The union and management at Hyundai Heavy Industry reached a temporary collective agreement on 31 December 2014 to raise employees’ basic salary by 37,000 KRW per month and count annual bonuses worth 700% of monthly wage into ordinary wage.
[Table 1] 2014 Temporary Collective Agreement at HHI
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△ Increase basic salary by 37,000 KRW (including 23,000 KRW base-up)
△ Count annual bonuses worth 700% of monthly wage into ordinary wage
△ Pay incentives (stocks worth 150% ordinary wage + 2 million KRW)
△ Retirement age at 60 (introduce a wage peak system at 59 or 60)
△ Company provides 3 billion KRW in In-house Welfare Fund
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Unionized workers at Hyundai Heavy Industry voted on 7 January 2015 against the temporary agreement made by company management and union leaders. Of a total 15,632 unionized workers who voted, 66.5% (or 10,390 workers) voted against the agreement. With an election of union representatives just ahead, unions likely desire to present uncompromising fronts and excessive demands were made in the early stage of the bargaining which created high expectations in the union membership. At the moment, Hyundai Heavy Industry’s union is demanding an increase of 132,000 KRW in basic monthly salary. After union elections, bargaining will start from scratch.