HD Hyundai Heavy Industries Labor and Management Reach Second Tentative Agreement... Base Salary Raised to 1,350,000 Won

Merger Celebration and Incentive Payments Included
Agreement Reached Amid Full-Scale Union Strike

HD Hyundai Heavy Industries labor and management have reached a second tentative agreement in their wage and collective bargaining negotiations. This comes about two months after the first tentative agreement was rejected in a union-wide vote in July.

Members of the cooperative holding a rally at the shipyard headquarters in Ulsan. Photo by Yonhap News

According to industry sources on the 17th, after negotiations held that day, HD Hyundai Heavy Industries labor and management agreed to set the base salary at 1,350,000 won, an increase of 2,000 won, and to provide an incentive payment of 5.2 million won. In addition, in connection with the merger with HD Hyundai Mipo, each union member will receive a merger celebration bonus of 1.2 million won. The two sides also agreed on institutional improvements, including expanding new hires, operating a joint labor-management consultative body, and increasing support for overseas training for outstanding employees.

The first tentative agreement reached in July included a base salary increase of 1,330,000 won, as well as incentive, special, and performance bonuses, but it was rejected by 63.8% of union members in a vote. The latest agreement increases the base salary raise and adds special support related to the merger. The union plans to put the details of the agreement to a full union vote. Depending on the outcome, the labor-management conflict that has lasted for over two months may finally be resolved.

Previously, on September 11, the HD Hyundai Heavy Industries union began an indefinite, full-scale strike starting at 8 a.m. During this process, Baek Hoseon, the head of the union branch, staged a protest atop a 40-meter-high turnover crane inside the Ulsan shipyard. However, both sides continued working-level talks and negotiations, sharing the view that they could not afford to miss the opportunities presented by the shipbuilding industry boom and the MASGA (Maritime Alliance for Shipbuilding Growth in America) project for Korea-U.S. shipbuilding cooperation. It is reported that on this day, negotiations began unusually early in the morning, leading to the second tentative agreement.

A representative of HD Hyundai Heavy Industries stated, "Despite difficult circumstances, labor and management have prepared a second tentative agreement," adding, "We hope that this industry-leading agreement will become a driving force for strengthening global competitiveness and advancing the local community."

This content was produced with the assistance of AI translation services.