Hyundai Heavy Industries shipyard units’ unions to propose group wage talks

Group negotiation in July, 2022 [Photo provided by Hyundai Heavy Industries]

Labor unions of Hyundai Heavy Industries Group’s three shipbuilding subsidiaries have agreed to jointly negotiate for wage increases and other benefits with the management.

The labor unions of the three shipbuilders, including Hyundai Heavy Industries Co., Hyundai Mipo Dockyard Co., and Hyundai Samho Heavy Industries Co., decided to seek a joint deal instead of pursuing individual talks.

Previously, each of the three labor unions discussed wage increases with their respective management. However, this year they are pursuing a group deal, seeking an equal scale of wage increase. They decided to make the change as there had been complaints from members over the differences in pay among the three companies. In 2021, Hyundai Mipo agreed to raise 40,000 won ($30.70) in base salary from January this year, while Hyundai Samho agreed on an increase of 71,000 won in February and Hyundai Heavy on 78,000 won last month.

However, it is not clear whether their management will accept the new approach as the firms have different conditions in terms of revenue, profitability and the number of employees. The unions plan to submit their proposal later this month to either the group’s holding company HD Hyundai Co. or the shipbuilding units’ holding company Korea Shipbuilding & Offshore Engineering Co.