ULSAN — Labor and management at HD Hyundai Heavy Industries (329180) have tentatively wrapped up this year's collective bargaining after 120 days, agreeing on a compensation package worth an average of more than 40 million won per worker.
The two sides opened their 22nd main bargaining session at the company's Ulsan headquarters at 2 p.m. on the 29th and reached a tentative agreement on this year's wage and collective bargaining deal after 14 hours of overnight marathon talks, the company and the union said on the 30th. The deal came 120 days after the first meeting on June 2. The union plans to hold a ratification vote among all members on Oct. 2, and the talks will be finalized if a majority of those voting approve.
The tentative deal centers on a 120,000-won increase in monthly base pay, including step increases, along with 11 million won plus 200% in lump-sum payments such as incentive bonuses, and performance-based pay. The company said the base pay increase, lump-sum payments and performance pay together amount to an average payout of 40.56 million won per union member. That is 10.61 million won more than last year's settlement.
The agreement also includes a range of provisions on working conditions, benefits and job security. The two sides agreed to hire new production and technical workers this year. They also doubled paid leave for childbirth to 20 days from 10 and expanded the scope of awards for long-serving employees. A new clause in the collective agreement requires 60 days' notice before a union member is dismissed.
This year's negotiations were not smooth. Both sides agreed that wages should rise amid the shipbuilding boom, but the union pushed for increases centered on fixed pay such as base wages, while management offered compensation weighted toward variable pay such as incentive bonuses. With the gap unresolved, the union staged seven partial strikes totaling 37 hours. Participation was limited, however, and the walkouts did not cause serious disruptions to production.
Intensive talks that began on Sept. 11 ahead of the Chuseok holiday broke down, prompting expectations that the union would step up its campaign after the break. But management moved quickly to request a resumption of dialogue, and negotiations gained momentum. The breakthrough is seen as reflecting a practical judgment by both sides that production needs to be kept stable amid a surge in shipbuilding orders and that workplace safety needs renewed attention.
"This tentative agreement is the result of long deliberation and consultation between labor and management," an HD Hyundai Heavy Industries official said. "We hope it will lead 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 local economy."
