HD Hyundai labor disputes and industrial safety issues

Labor unions representing three major subsidiaries of HD Hyundai—including Heavy Industries, Construction Equipment, and Electric—have secured the legal right to strike. The unions are demanding a larger share of operating profits to compensate for previous industry downturns, with the Heavy Industries union specifically requesting that at least 30% of operating profits be allocated to performance bonuses.

While unions expressed a preference for negotiations, the situation escalated following a fatal industrial accident on August 30, where a worker was found deceased in a boiler machine room. This incident led the Busan Regional Employment and Labor Office to issue a partial work stoppage order regarding the use of A-frame ladders.

On August 11, the labor union at HD Hyundai Heavy Industries launched its first full-scale partial strike of the year. 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 union is seeking significant increases in base pay and profit-sharing, while management has proposed a 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 shipbuilding market fluctuations.

The union has announced further industrial action, including 4-hour stoppages on August 14 and 15, and 7-hour stoppages from August 16 to 18. Both parties have agreed to intensive daily negotiations to attempt a tentative agreement before the Chuseok holiday.