Hyundai Steel and its labor union have reached a tentative agreement in this year's wage and collective bargaining negotiations, which includes an 80,000 won increase in base salary and a 300% performance bonus. This marks the first tentative agreement reached among major affiliates of the Hyundai Motor Group this year.
According to industry sources on July 31, Hyundai Steel and the union held negotiations and produced the tentative agreement.
The agreement includes an 80,000 won monthly increase in base salary, which matches the company's previous proposal. The performance bonus will consist of 300% of the base salary, along with a cash payment of 5 million won and 300,000 won in gift certificates.
Previously, the union had demanded an increase of 149,600 won in base salary and a performance bonus equivalent to 15% of last year's operating profit. The company had expressed difficulty in fully accepting the union's demands due to the downturn in the steel industry and declining profitability.
During negotiations on July 28, the two sides discussed the company's proposal but did not reach a final agreement. Following a request from the company, negotiations resumed in the afternoon, leading to the tentative agreement after further adjustments to the details.
The Hyundai Steel union had secured the right to strike after a decision by the Central Labor Relations Commission to suspend mediation and a successful vote among members on whether to engage in strike action. With this tentative agreement, concerns over production disruptions due to a potential strike have been alleviated for now.
The union plans to present the tentative agreement to its members for a vote. If a majority approves, this year's wage negotiations will be finalized.
* This article has been translated by AI.
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