Amid Labor Shortage and Soaring Cost
Hyundai Heavy Industries' labor union announced an eight-day strike from April 27.
The company's unionists will go on strike for seven hours on April 27 and eight hours from April 28 to May 4. The labor union of Hyundai Heavy Industries exercises the bargaining rights of Hyundai Heavy Industries, Hyundai Electric, and Hyundai Construction Equipment. The labor union hinted that if there was no progress in negotiations after the eight-day strike, it may start another strike. If the strike is extended, production disruptions will be inevitable at Hyundai Heavy Industries.
The labor and management of Hyundai Heavy Industries have been negotiating wages for more than a year, which they failed to wrap up in 2021. Last month, the two sides reached a tentative agreement that included a 73,000 won increase in basic salaries, a 148-percent performance bonus, 2.5 million won in incentives, a one-day special leave, and the reinstatement of one dismissed worker. But unionists voted against the agreement.
“The management is not making any new proposals,” the labor union said, explaining why they had no choice but to go on strike. “The management has not shown a sincere attitude in the negotiations.”
Unionists occupied some high-altitude production facilities during the strike in 2021. If this year's strike develops in a way similar to that of 2021 and becomes prolonged, it may disrupt the delivery of some ships to clients. In this case, Hyundai Heavy Industries will suffer from a double whammy -- delivery delays and a drop in profits due to raw material price hikes.