Lump-sum payment raised by 500,000 won from first proposal

Seniority increment lifted by 5,000 won

Full membership vote set for Monday

An aerial view of the HD Hyundai Heavy Industries shipyard. [Provided by HD Hyundai]
An aerial view of the HD Hyundai Heavy Industries shipyard. [Provided by HD Hyundai]

HD Hyundai Heavy Industries and its union reached a second tentative agreement on this year's wages and collective bargaining terms, including a base pay increase of 120,000 won ($91). The deal came 21 days after union members voted down the first tentative agreement, and the union branch chief's high-altitude sit-in protest ended with the new accord.

The two sides reached the second tentative agreement at their 26th round of negotiations, held Friday at the company's headquarters in Ulsan. Under the terms, base pay will rise by 120,000 won, including a 55,000-won seniority increment. The lump-sum payment — covering incentive bonuses and other allowances — was set at 11.5 million won ($8,680) plus 200 percent.

Compared with the first tentative agreement, the lump-sum payment increased by 500,000 won. The total base pay raise remains the same, though the seniority increment within that figure was raised by 5,000 won. The two sides also agreed to consolidate collective bargaining terms and employment rules under the HD Hyundai Heavy Industries standard, while retaining certain more favorable conditions from the former HD Hyundai Mipo, including a 14-day retirement consolation leave.

For severance pay calculations, employees may choose any three consecutive months from the four months immediately preceding the date on which severance entitlement arises. The agreement also includes the provision of 300,000 welfare points.

The parties further agreed to conclude a special accord on industrial transition. Under that arrangement, the company would brief the union in advance whenever automation or digitalization in the shipbuilding sector could affect employment, and the two sides would discuss job security measures through a joint labor-management consultative body.

Whether the tentative agreement takes effect will be decided by a membership ratification vote. The union plans to hold the vote among all members on Monday. A company official said that while the two sides had again reached a tentative agreement through negotiations, a vote held Oct. 2 had fallen through when 52.14 percent of participating members voted against it.

After talks stalled following that rejection, the union launched partial strikes of seven hours a day for all members beginning Monday. Union branch chief Kim Dong-ha began a high-altitude sit-in on a crane inside the company premises on Sunday. The protest ended after five days with Friday's tentative agreement. The union has now staged a total of 11 rounds of partial strikes involving all members during this year's wage and collective bargaining process.


keg@heraldcorp.com