Hyundai Steel, which is in negotiations with the labor union regarding wages and collective agreements, proposed to give a performance bonus equivalent to 400% of the basic salary plus a flat amount of 10 million won, but the union rejected it, saying it was "just a few hundred won more."
According to the steel industry on the 14th, Hyundai Steel presented a proposal during the 21st negotiation on the previous day to pay 10 million won in addition to a management performance bonus, encouragement payment, and living stability support, amounting to 400% of the basic salary. This is an increase of 5 million won from the 20th negotiation proposal, but the union stated, "It falls far short of the group company level."
The major subsidiaries of Hyundai Motor Group wrapped up their collective negotiations for 2024. Hyundai Motor paid 500% of the basic salary plus 18 million won, while HYUNDAI WIA paid 400% of the basic salary plus 17 million won (including stock). Hyundai Transys paid 400% of the basic salary plus 13.2 million won, and Hyundai GLOVIS paid 37% of the annual basic salary plus 13 million won.
Last year's operating profit, which serves as the benchmark for collective negotiations in 2023, was the highest for Hyundai Motor at 15.1269 trillion won, followed by Hyundai GLOVIS at 1.7529 trillion won (Hyundai GLOVIS for 2024), Hyundai Steel at 798.3 billion won, HYUNDAI WIA at 232.8 billion won, Hyundai Rotem at 210 billion won, and Hyundai Transys at 117 billion won. The operating profit margins that Hyundai Motor Group has used as a performance criterion since 2022 are as follows: Hyundai Motor (9.3%), Hyundai GLOVIS (6.2%), Hyundai Rotem (5.9%), Hyundai Steel (3.1%), HYUNDAI WIA (2.9%), and Hyundai Transys (1.0%).
The amount proposed by Hyundai Steel is lower than that of other subsidiaries. The union is demanding the highest level of performance bonuses within the group. While rejecting the company's proposal, the union assessed that "the company's willingness to reach an agreement is evident." Both sides also discussed accelerating the negotiation cycle.