HD Hyundai Heavy Industries Wage Negotiations Stall as Union Members Vote Down
Negotiations between HD Hyundai Heavy Industries management and labor over the 2026 wage and collective bargaining agreement have hit a roadblock, with union members voting against the tentative agreement reached just days earlier. Despite a record-high total wage increase proposed by the company, dissatisfaction among union members looms large, leading to speculations of a possible full-scale strike.
As of October 2, the vote saw 52.14% of the 7,541 participating union members rejecting the proposal, resulting in a failed approval rate of 47.58%. In response to this, both labor and management at HD Hyundai Heavy Industries are gearing up to resume negotiations and redraft the preliminary agreement for the 2026 collective wage bargaining.
Details of the Proposed Agreement
The latest tentative agreement included a monthly base salary increase of 120,000 won, along with additional bonuses and benefits such as a one-time bonus, performance bonus, rewards for long-serving employees, recruitment for new roles, and an extension of paternity leave. The total value of the package was estimated at 40.56 million won, marking a significant increase from the previous year.
Analysts attribute the rejection of the proposed wage hike to the discrepancy in fixed pay compared to previous years, where base salary increases were higher. The impasse in negotiations is also linked to comparisons with Samsung Heavy Industries, where the proposed increase at HD Hyundai Heavy Industries fell short.
Potential for Further Action
During this year’s negotiations, the union at HD Hyundai Heavy Industries resorted to partial strikes, and with the rejection of the preliminary agreement, talks of a full-scale strike are circulating. In response, the company expressed regret over the outcome and pledged to continue seeking solutions that balance rewards for performance and competitiveness.
As the standoff continues, the future of wage negotiations at HD Hyundai Heavy Industries remains uncertain, with both labor and management at a crossroads on how to bridge the gap and reach a mutually acceptable agreement.
