Written by
Gary Dixon

12 Feb 2018

Hyundai Heavy workers agree wage deal

12 Feb 2018 • by Gary Dixon

Union members at Hyundai Heavy Industries (HHI) have backed a new wage deal.

The Korean shipbuilder's union said 56.3% of the 8,724 who voted were in favour.

This means that for the 2016 and 2017 financial years, each employee will receive a month's extra salary plus KRW 1.5m ($1,380) as a bonus, with their basic pay frozen for the next two years, the Yonhap news agency said.

For 2017 alone, HHI is offering an additional KRW 1.5m in cash.

They will also receive 230% of their monthly salary as performance-based pay for the 2016 fiscal year that ended on 31 May, and 97% for fiscal 2017.

Decision changed

Last month, staff had rejected an unspecified wage agreement by a similar margin, with the union saying that unhappiness with performance-related bonuses could have been the reason.

Last year, the yard was hit by its first full strike in 23 years.

Partial walk-outs took place in 2015 and 2016.

HHI CEO Kang Hwan-goo has warned of an unprecedented crisis due to declining order backlogs.

The shipbuilder said it aims to achieve KRW 7.98 trillion in revenue this year, which would be down 60% from 10 years ago.