HD Hyundai Heavy Industries’ labor tentative agreement has been voted down by the union members.
On Nov. 8, HD Hyundai Heavy Industries Union voted 92.2% of its members in favor of 39.46% and 59.67% against the previous provisional agreement drawn up by the labor and capital parties.
On November 6, the labor and capital parties at HD Hyundai Heavy Industries reached a tentative agreement that included a basic wage increase of 129,000 won, 4.5 million won bonuses (including 500,000 won gift certificates), and a 200,000 won increase in Lunar New Year’s and Mid-Autumn Festival holiday pay. The failure of the vote means that the agreement was rejected by the union and the two sides will need to renegotiate.
On November 6, labor and management at HD Hyundai Heavy Industries reached a tentative agreement that included a basic wage increase of 129,000 won, 4.5 million won bonuses (including 500,000 won gift certificates), and a 200,000 won increase in Lunar New Year’s and Mid-Autumn Festival holiday pay. The failure of the vote means that the agreement was rejected by the union and the two sides will need to renegotiate.
Based on the booming ship market, the union had previously demanded an increase in entitlements, including a 159,800 won increase in basic pay, a change in the calculation criteria for performance bonuses and an extension of the retirement age, among other demands.
HD Hyundai Heavy Industries’ labor dispute has been going on for months this year and is expected to continue. There have been incidents of violent and bloody clashes during recent union organized strikes, causing concern in the global shipbuilding industry.
Thanks to strong demand from shipowners, shipyards under HD Hyundai have already received orders for 169 new vessels worth $18.84 billion this year, far exceeding the annual order target of $13.5 billion. A South Korean industry insider warned, “If the strike continues until the end of the year, massive delivery delays at HD Hyundai will be inevitable. The loss of reliability will lead to a decline in the competitiveness of the Korean shipbuilding industry.”