A new legal agreement has been signed at HD Hyundai Heavy Industries. This agreement was reached after the twenty-sixth round of negotiations on October 23, 2023, at the company's headquarters in Ulsan. This agreement was signed following the rejection of the initial agreement in a union vote that lasted for 21 days.
Details of the New Agreement
This new agreement emphasizes an increase in the base salary by 120,000 won (approximately $90.59) and a one-time payment of 11.5 million won (approximately $8,682), as well as 200 percent. The one-time payment has increased by 500,000 won compared to the previous agreement, and the salary increase has reached 55,000 won. Additionally, the provision of 300,000 won as a welfare benefit and adjustments in calculating retirement salaries and a special agreement regarding industrial transfers have also been included in this agreement.
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Impact on Labor Conditions
The union is set to hold a vote to approve or reject this agreement on October 27. In the previous vote, 52.14 percent of voters opposed the initial agreement. The key point is whether the new conditions can satisfy the union members or not. With the finalization of this agreement, the sit-in protest by Kim Dong-ha, the head of the union branch, ended after five days.
On the other hand, the sit-in protest by the subcontractors' union at the Hanwha Ocean workplace in Gojye continues. Members of the shipbuilding subcontractors' union in the Gojye, Tongyeong, and Goseong areas have been demanding negotiations with the main contractor since September 30 by sitting on cranes and factory roofs.
While HD Hyundai Heavy Industries has reached an agreement on salary increases and collective bargaining conditions, the Hanwha Ocean subcontractors' union points to issues related to discrimination in performance bonuses, real wage reductions, and industrial accidents. This indicates structural problems that cannot be resolved solely through wage levels.
Hanwha Ocean has announced that it is improving the standards for performance bonus payments and increasing unit prices for partner companies in line with the union's requests. The company is also reviewing cases related to the concealment of industrial accidents and taking necessary measures against the relevant companies.
The two sides held the second round of negotiations on October 15, but the sit-in protest at the site continues.
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