Members of the National Metal Workers' Union Hyundai Steel branch will halt equipment operations for a day as part of a partial strike. This follows a breakdown in wage and collective bargaining negotiations, and there are plans to escalate to a general strike in the future.
According to the steel industry on the 17th, the Incheon and Pohang branches of the Metal Workers' Union Hyundai Steel branch and the Chungnam branch of the Metal Workers' Union Hyundai Steel Cold Rolling branch will hold a 24-hour strike from 7 a.m. on the 21st to 7 a.m. the following day.
During this time, all union members, except for those designated as essential workers, will withdraw from the site, while essential workers will only carry out necessary maintenance tasks to protect the equipment.
The Incheon branch of the Metal Workers' Union Hyundai Steel plans to initiate a preliminary strike starting at 7 a.m. on the 20th, carrying out a total strike lasting 48 hours.
Hyundai Steel and the union have been negotiating since September of last year, but the negotiations failed to reach an agreement even during the 18th round of talks on the 16th.
In previous negotiations, the management proposed a plan centered on a 100,000 won increase in base pay and a comprehensive discussion of performance bonuses for 2024 and 2025, which provoked backlash from the union. It is reported that no significant proposals were made in subsequent negotiations.
The union is requesting conditions for collective bargaining similar to those of Hyundai Motor, including a 159,800 won increase in base pay (excluding seniority raise), maximum performance bonuses, a two-year, 10 million won interest-free loan for vehicle purchases, and a 20% discount on vehicles for retirees every three years.
The two sides are set to engage in the 19th round of negotiations on the 23rd. The union has warned that if management does not present acceptable proposals, it will carry out a general strike in Yangjae-dong, Seoul, where the headquarters of Hyundai Motor Group is located, on the 11th of next month.
In addition to the strike, union members are continuing a one-person sit-in protest at the entrance of the residence of Chung Euisun, chairman of Hyundai Motor Group, in Hannam-dong, Yongsan-gu, Seoul. Protests are also being held in front of the Goyang Hyundai Motor Studio.
A union official noted, "Discussing performance bonuses for last year and this year at once essentially means not paying last year's bonuses," adding, "The management's proposal is unacceptable."
The management is taking the position that accepting the union's demands would lead to a significant deficit, as last year's operating profit is expected to decrease approximately 60% to around 300 billion won from the previous year's 798.3 billion won. Regarding the strike, operations at the Incheon and Pohang factories are already limited, so they do not anticipate significant disruptions to production.
A Hyundai Steel official stated, "Typically, performance bonuses are based on operational performance," and added, "If we pay the largest performance bonuses as the union demands, it could lead to a situation where the company would need to spend last year's operating profit entirely on bonuses."