HD Hyundai Heavy Industries workers strike over wage disputes

The labor union at HD Hyundai Heavy Industries, South Korea's largest shipbuilder, launched its first full-scale partial strike of the year on August 11. The four-hour work stoppage involved all union members following the rejection of the company's third proposal regarding wage and collective bargaining agreements.

The dispute centers on the structure of compensation. The union is demanding a significant increase in base pay and profit-sharing based on operating profits. Conversely, the company has proposed a smaller base pay increase of 110,000 won, supplemented by a 10 million won incentive, a 200% bonus, and gift certificates. Management argues that a higher proportion of variable pay is necessary to respond to fluctuations in the shipbuilding market.

The union has announced plans for further strikes, including 4-hour stoppages on August 14 and 15, and 7-hour stoppages from August 16 to 18. Despite the industrial action, both parties have agreed to engage in intensive daily negotiations with the goal of reaching a tentative agreement before the Chuseok holiday.