HD Hyundai Heavy Industries (329180.KS) and its union have reached a deal on this year's wage and collective bargaining agreement after five months of talks, lifting monthly base pay by 120,000 won.
The Hyundai Heavy Industries branch of the Korean Metal Workers' Union said on the 27th that the second tentative agreement was approved, with 4,253 members, or 55.06%, voting in favor. A total of 7,724 of the union's 8,193 members cast ballots. Negotiations began with an opening session on June 2 and ran for about five months.
The tentative agreement includes a 120,000-won increase in monthly base pay, which covers a 55,000-won seniority-based step raise, a one-time payment of 11.5 million won plus 200% of base pay in incentives and other bonuses, and 300,000 won in welfare points.
The two sides had reached a first tentative agreement on the 30th of last month centered on a 120,000-won base pay increase, including a 50,000-won step raise, and a one-time payment of 11 million won. That proposal was rejected in a vote, with 52.14% opposed. At the 26th round of talks on the 23rd of this month, they produced a second tentative agreement that raised the step component by 5,000 won and the one-time payment by 500,000 won from the first proposal.
The union estimated that the agreement would deliver an average of 41.36 million won per member.
An official at HD Hyundai Heavy Industries said the settlement "laid the groundwork for stable wage increases and performance-based rewards, and served as a meaningful opportunity to overhaul the collective agreement following the merger." The official added that the company would "listen more closely to voices on the shop floor and take the lead in building a vibrant and harmonious organizational culture."