HD Hyundai Heavy Industries union initiates strike procedures

Both parties are scheduled to continue negotiations on July 23, coinciding with the ongoing strike authorization vote

The HD Hyundai Heavy Industries (HD HHI) union has initiated procedures for a strike, despite the company achieving its annual order target earlier than expected due to a booming shipbuilding industry. The union, part of the Korean Metal Workers’ Union (KMWU), announced on July 19 that it has filed for labor dispute mediation with the Ministry of Employment and Labor, The Chosun Daily reported.

The move follows the 15th round of pay negotiations held at the Ulsan headquarters on July 17. During the talks, the union expressed frustration with the management’s slow response to their demands. “We believe we’ve sufficiently explained our demands over the 15 negotiation sessions, and given that we presented our demands on April 30, the management has had ample time to review them. However, the management’s delays appear to be an attempt to wear down the union. Therefore, based on the negotiations, we will apply for labor dispute mediation with the Ministry of Employment and Labor,” a union representative said.

Filing for labor dispute mediation is often seen as a precursor to a strike. The National Labor Relations Commission, under the Ministry of Employment and Labor, will review the application, listen to both sides, and propose a mediation plan after a 10-day mediation period. If both parties fail to agree on the proposal, the commission will declare a mediation breakdown. Once this happens, the union can legally engage in strikes or other forms of industrial action, while management can order a lockout.

In addition to filing for labor dispute mediation, the union plans to hold a strike authorization vote among its members from July 22 to 24. This year, the union’s demands include a basic salary increase of 1,598,000 won, changes to performance-based bonus calculations, an extended retirement age, and veto power over promotions. Management has not yet presented a counterproposal. Both parties are scheduled to continue negotiations on July 23, coinciding with the ongoing strike authorization vote.