This year's wage and collective bargaining talks between HD Hyundai Heavy Industries (329180.KS) and its labor union have broken down. With management's goal of reaching a deal before the Chuseok holiday now effectively out of reach, the dispute is set to drag on.
The union declared the breakdown official in a bargaining update on the 18th, saying it had held eight straight days of intensive negotiations to secure a deal before Chuseok in line with what workers on the shop floor wanted, but that the gap over its core demands was never bridged. The union said the talks failed because there was no change workers could feel, citing insufficient fixed pay and recreational facilities that were not converted into a universal benefit.
The union had made a demand to pay out 30% of operating profit as performance-based bonuses the centerpiece of its proposals. Management countered with a final offer that included a monthly base pay increase of 110,000 won, which covers a 47,000-won seniority-based raise, along with incentive pay of 200% plus 10.5 million won. Neither side moved.
With no agreement reached, the next round of talks will now come after the Chuseok holiday.
The union warned it would escalate industrial action to its highest level, including an all-out strike. It said it would move beyond partial walkouts to a full-scale fight that inflicts real damage on production, and that the entire shipbuilding union federation would stand on a single front. The union began a four-hour partial strike involving all members on the 11th, then extended the walkouts to seven hours from the 16th through the 18th.
The union nevertheless plans to keep operations running normally next week without strikes, and to finalize the specific level of action and its response after the Chuseok holiday. An all-out strike would sharply increase members' wage losses under the no-work, no-pay principle, so the final decision is expected to follow internal deliberation.
An HD Hyundai Heavy Industries official said the company would negotiate in good faith to narrow the differences between the two sides.
