HD Hyundai Heavy Industries labor and management reach 2nd tentative wage deal
Labor and management at HD Hyundai Heavy Industry have successfully reached a second tentative agreement on this year’s wage and collective bargaining after a member vote rejected the initial proposal. The new agreement includes an additional one-time payment of 500,000 won.
Details of the Agreement
Shipbuilding industry sources revealed that the agreement features a base salary increase of 120,000 won, which incorporates a seniority-based raise of 55,000 won. Additionally, a one-time payment of 11.5 million won, including an incentive bonus and a 200% payout, is part of the deal.
This agreement comes just 23 days after the first tentative agreement was reached at the end of last month. The union is set to conduct a vote among its members on the 26th to ratify the new agreement.
Notable Changes in the Agreement
A significant change in the new agreement is the increase in the one-time payment by 50,000 won compared to the initial proposal. While the total base salary increase remains at 120,000 won, the seniority-based raise has been boosted by an additional 5,000 won.
Moreover, the collective bargaining agreement will align with HD Hyundai Heavy Industry standards, incorporating favorable conditions for members, such as the 14th-day retirement consolation leave from the former HD Hyundai Mipo.
Industrial Transition and Employment Stability
The agreement also includes provisions for a special agreement on industrial transition to address automation and digitalization in the shipbuilding industry. It outlines that in cases where employment is affected, the company will engage in consultations with a joint labor-management body to discuss measures for employment stability.
After several rounds of negotiations and a rejected initial proposal, labor and management have managed to find common ground, avoiding further escalation of the strike. The hope is that this new agreement will lead to a smooth settlement for all parties involved.
In conclusion, the recent developments at HD Hyundai Heavy Industry showcase the importance of constructive dialogue and compromise in labor relations, ultimately benefiting both the workers and the company.
