Labor negotiations at HD Hyundai Heavy Industries and Posco are facing significant challenges. The HD Hyundai Heavy Industries union initiated a partial strike on September 2, while Posco's labor and management are set to resume main negotiations on September 3. If the differences between the two sides remain unresolved, Posco could face its first strike since its founding, raising tensions in the industry.
According to industry sources, the Metal Workers' Union of HD Hyundai Heavy Industries began a seven-hour partial strike on September 2, involving executive members, negotiators, and delegates. This marks the union's first strike of the year and the fourth consecutive year of labor disputes.
The union plans to continue staggered partial strikes by organization until September 10. Operations will resume on September 3 and 7, with a four-hour strike involving all members scheduled for September 15. The union intends to maintain negotiations with management alongside the strikes.
In a previous negotiation session on September 1, HD Hyundai Heavy Industries proposed a wage increase of 105,000 won and a bonus of 200% plus 10 million won. However, the union rejected this offer, stating it fell short of their expectations and demanded a second proposal. The union is seeking a monthly wage increase of 149,600 won (excluding seniority raises), a 100% increase in bonuses, and a minimum 30% share of operating profits.
As HD Hyundai Heavy Industries enters actual strike action, Posco is also at a critical juncture regarding potential strikes. The two sides are scheduled to hold their 25th main negotiation session at 3 p.m. on September 3 in Pohang. This meeting comes 16 days after the Central Labor Relations Commission halted final mediation on August 18. The union currently holds legal strike rights.
Posco's labor and management are also showing significant differences regarding wages and performance compensation. The union is demanding a 7.1% increase in base salary, a 600% bonus, 50 shares of employee stock ownership, and a 200% holiday bonus.
In contrast, management has proposed a 1.5% increase in base salary, a bonus of 2.5 million won, and an additional 300,000 won in welfare points. The company argues that accepting all union demands would require approximately 1.4 trillion won, which is not feasible under current management conditions.
The union has set September 9 as the effective deadline for negotiations. If the company does not present a revised proposal by then, the union plans to initiate a 48-hour partial strike at the Pohang and Gwangyang steelworks, with the possibility of escalating actions depending on the situation. In a strike vote conducted in July, 92.2% of members supported the strike.
This week is expected to be a critical turning point for both companies' labor negotiations. If Posco and the union fail to reach an agreement, it would break the company's 58-year strike-free record since its establishment in 1968. The prolonged labor disputes in key production sites for shipbuilding and steel could significantly impact production schedules and related industries.
An industry insider noted, "As performance bonuses at SK Hynix and Samsung Electronics gain attention, there is a growing atmosphere for unions in other sectors to demand similar bonuses. If strikes occur, production disruptions are inevitable, making it crucial for labor and management to find common ground through negotiations."
* This article has been translated by AI.
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