HHI Group unions package joint bargaining terms, includes end to peak wage system

Pulse 2022. 6. 23. 15:06
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[Source: Hyundai Heavy Industries Co.]

Labor unrest from collective action at dockyards behind the country’s top shipbuilding group Hyundai Heavy Industries may be inevitable as the unions in their first joint terms included higher financial compensations and abolition of peak wage system.

The unions of under the group - Hyundai Heavy Industries Co., Hyundai Mipo Dockyard Co. and Hyundai Samho Heavy Industries Co. - on Thursday confirmed their demands for this year’s collective bargaining for the first time as one team.

They agreed to come together to argue for this year’s wage negotiation and drew up a joint set of terms.

The proposal includes a 142,300 won ($109.10) won increase in the base salary, abolition of the peak wage system and expansion of the education support.

Hyundai Heavy Industries union, separately, plans to demand an additional 12,000 won pay increase for promoted workers, special incentives in celebration of the company’s 50th anniversary, withdrawal of performance-based salary system, and 5 billion won funding for workers’ welfare fund.

The three unions are planning to send their unified proposal to the group’s holding entity HD Hyundai or shipbuilding holding entity of Korea Shipbuilding & Offshore Engineering next week.

Separate demands of each unit will also be sent by next week for negotiation with the management in July.

“Wage negotiations have been conducted separately by each unit, and we found that this is less efficient and could create a conflict between unions,” said a union source.

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