Photo = Yonhap news

 

 

[Alpha Biz= Kim Jisun] Members of the Hyundai Steel Union from the Chungnam Branch of the Korean Metal Workers' Union are holding a solo protest in front of the home of Hyundai Motor Group Chairman Euisun Chung in Hanam-dong, Yongsan, Seoul. The protest is in response to wage and collective bargaining issues at the Hyundai Steel plant in Dangjin.

According to reports from the steel industry on Wednesday, union members began their solo protests on the 10th, holding signs with messages like “Condemn Hyundai Capital’s Divide and Conquer Tactics” in front of Chairman Chung’s residence. The protest began after the 17th round of negotiations on the same day, when the management proposed a wage increase of 100,000 won and suggested discussing both 2024 and 2025 performance bonuses as part of the current year's collective bargaining.

The union, however, has rejected the management's proposal, claiming that the performance bonus offer would effectively mean no bonuses would be paid. The union is demanding a 15.98 million won increase in basic salary (excluding seniority promotions), the largest performance bonuses, and additional benefits such as interest-free loans for car purchases for up to two years and a 20% discount every three years for retirees’ vehicle purchases, similar to Hyundai Motor’s conditions.

Hyundai Steel, however, is facing a severe decline in profit, with an estimated operating profit of around 300 billion won in 2023, down about 60% from the previous year’s 798 billion won. The company argues that meeting the union's demands would essentially lead to a deficit. Additionally, the union has delayed the shutdown of non-operating facilities, which has led to a decrease in operational efficiency.

Hyundai Steel had originally decided to halt operations at its Pohang No. 2 plant, where the operation rate has dropped to 10%, but the union’s opposition led to a partial restart and a reduction in the two-shift system. Currently, the rolling facilities at the Pohang No. 2 plant are under maintenance, with only the steelmaking facilities partially operating.

The 18th round of collective bargaining is scheduled for the 16th, and the union has stated that if the management does not present an acceptable proposal by that day, they will go on strike.

 

 

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