ULSAN — The labor union at HD Hyundai Heavy Industries (329180) walked out on the 11th in its first strike involving all union members since this year's collective bargaining began. Alongside the walkout, the two sides opened daily intensive negotiations the same day in a final push to reach a deal before the Chuseok holiday.
The Hyundai Heavy Industries branch of the Korean Metal Workers' Union said the strike would run for four hours, from 1 p.m. to 5 p.m. on the 11th. Union members planned to gather at the Democracy Plaza inside the company's Ulsan headquarters at 1:30 p.m. for a rally. The union had staged rotating walkouts by delegates, executives and individual departments since the 2nd, but this is the first time all members have stopped work at once during this year's talks.
The union plans to escalate the walkouts in stages. Four-hour strikes are also set for the 14th and the 15th, with the branch launching a strike committee on the 15th. From the 16th through the 18th, the daily strike will be expanded sharply to seven hours.
Separately from the strike, the two sides began setting up the main bargaining table every day from the 11th for intensive negotiations. At the 20th round of main talks the previous day, the union rejected the company's third offer but proposed intensive negotiations, calling for all outstanding issues to be put on a single table and settled.
The company's third offer centered on a flat increase of 110,000 won in base pay, including 47,000 won in seniority-based step increases; a bonus of 10 million won plus 200% of monthly pay and 500,000 won in gift certificates; an easing of the age threshold for spouses eligible for comprehensive medical checkups, to 35 from 40; and the creation of a social contribution fund. Compared with the second offer made on the 8th, base pay was raised by 5,000 won and the bonus by 500,000 won in gift certificates.
The union, however, judged that the company's offer fell short of members' expectations. In this year's wage and collective bargaining talks, the union is demanding a 149,600 won increase in base pay, excluding seniority-based step increases; a 100% increase in bonuses; and a distribution of at least 30% of operating profit as performance pay. It has also put forward as key agenda items the elimination of institutional gaps that emerged during the merger with HD Hyundai Mipo, including the integration of collective agreements, along with an overhaul of the pay structure to withstand downturns, responses to industrial transition and measures to eliminate serious industrial accidents.
Kim Dong-ha, head of the union branch, said in a union newsletter that the union must correct the institutional differences created by the merger and secure a fair share of gains commensurate with the boom. "At the bargaining table we will clearly present our core demands, and we will raise the pressure by carrying out strikes on the shop floor at the same time," Kim said.
The two sides have held 20 rounds of talks since their first meeting on June 2. With the Chuseok holiday beginning on the 24th, and given the time needed to prepare a members' vote on any tentative agreement, next week — the 14th through the 18th — is seen as the effective deadline for a deal before the holiday.
