The labor and management at HD Hyundai Construction Equipment and HD Hyundai Infracore have produced a tentative agreement on this year's wage and collective bargaining deal. With bargaining wrapping up at affiliates where a merger has been decided, HD Hyundai appears to be shedding strike risk.
According to HD Hyundai and others on the 24th, labor and management at HD Hyundai Construction Equipment and HD Hyundai Infracore reached a tentative agreement the previous day centered on a 120,000 won increase in base pay. Although this year's base pay increase falls short of the initial demand (a 141,300 won increase), it is said to be the second-highest increase in the past 10 years.
Labor and management also agreed to pay a congratulatory bonus tied to the two companies' merger. The bonus will be 100% of the standard wage (the ordinary wage used as the basis for overtime and bonus payments) plus 500,000 won. They also agreed to sign an employment stability letter related to the integration within the year and to change the criteria for paying management performance bonuses to retirees.
HD Hyundai Construction Equipment and HD Hyundai Infracore, which have carried out actions such as a trip-to-Seoul protest by union officials and a four-hour strike by all members during the negotiations, halted the strike with the production of the tentative agreement. The two companies plan to hold a general meeting of union members that day to vote on the tentative deal. If a majority of each union's members vote in favor, a signing ceremony will follow and this year's wage and collective bargaining talks will conclude.
If each company's agreement is approved, HD Hyundai will wrap up wage and collective bargaining at affiliates whose mergers have been decided, following HD Hyundai Heavy Industries and HD Hyundai Mipo. HD Hyundai Heavy Industries approved a deal centered on a 135,000 won base pay increase on the 22nd of last month, and HD Hyundai Mipo also approved a similar-level deal on the 2nd and held a signing ceremony.
With the merger plan approved at an extraordinary shareholders' meeting held the previous day, HD Hyundai Heavy Industries and HD Hyundai Mipo will launch as integrated HD Hyundai Heavy Industries on Dec. 1. HD Hyundai Construction Equipment and HD Hyundai Infracore had their merger plan approved at an extraordinary shareholders' meeting on July 1 and will be integrated as HD Construction Equipment on Jan. 1 next year.