HD Hyundai Heavy Industries (329180) and its union have reached a tentative agreement on this year's wage and collective bargaining negotiations, centered on a 120,000 won increase in monthly base pay.
According to the company and the union on the 30th, the two sides drew up a tentative deal that includes a flat 120,000 won increase in monthly base pay — including 50,000 won in step-based raises — a one-time payment of 11 million won, a bonus equal to 200% of monthly base pay to help win more shipbuilding orders, and performance-based pay.
The lump-sum payment consists of 5 million won to mark the signing of a special agreement on industrial transition, 3 million won as a productivity improvement incentive, 2 million won as a labor-management cooperation incentive, and 1 million won in Onnuri gift certificates to mark the signing of the integrated collective agreement. Total annual compensation per union member averages 40.56 million won, up 10.61 million won from a year earlier.
The tentative agreement also covers the integration of collective agreements in line with the merger with HD Hyundai Mipo, along with expanded maternity protections and employee benefits. Childbirth leave will be extended to 20 days from 10, and six days of annual leave for fertility treatment will be newly introduced. Severance payments for retirees with 20 or more years of service will rise to two months of base pay from one month, and a new program will allow employees and their spouses to receive comprehensive medical checkups in the year they retire.
The two sides opened their 22nd round of main negotiations at the company's Ulsan headquarters at 2 p.m. the previous day and reached the deal after 14 hours of overnight talks. It came 120 days after their first meeting on June 2. The union plans to hold a ratification vote among all members on Oct. 2. The negotiations will be finalized if a majority of those voting approve.
During the talks, the two sides had differed over the size of the wage increase and whether to expand fixed pay. The union staged seven partial strikes totaling 37 hours, but the two sides found common ground as they agreed on the need to prevent production disruptions amid the shipbuilding boom and to renew the workplace mood.
"We hope this leads to a final settlement based on sufficient understanding and support from our members, so that labor and management can together strengthen the company's competitiveness and add vitality to the regional economy," an HD Hyundai Heavy Industries official said.
