Hyundai Steel, South Korea’s second-largest steelmaker, and its labor union have reached a tentative agreement on wages and working conditions, the company said on April 10. If union members approve the deal in an upcoming vote, the negotiations will be concluded after more than six months of talks and a series of labor disputes.
According to Hyundai Steel, the tentative agreement includes a wage increase of 101,000 won, a 450% raise in basic salary, and a 10.5 million won performance bonus for 2024. This is higher than the company’s original offer of a 450% basic salary raise and a 10 million won bonus. The talks, which began at 2 p.m. the previous day, lasted about 11 hours and concluded in the early morning with a tentative agreement. Once union members vote, the deal will be finalized.
The negotiations have been ongoing since last September. While Hyundai Steel initially proposed a 26 million won performance bonus per worker, the union pushed for a higher bonus, similar to Hyundai Motor’s. The talks made progress when the company offered an improved compensation plan.
Facing a severe downturn in the steel industry, Hyundai Steel struggled, including declaring its first-ever workplace closure and implementing emergency management measures. The union also conducted a series of disruptive strikes throughout the process.
