[Alpha Biz=(Chicago) Reporter Kim Jisun] Hyundai Steel's labor union has drafted a request ahead of wage negotiations with the company. The union's demand reportedly calls for 25 percent of last year's total operating profit to be paid as performance-based bonuses. This is a total of 336.2 billion won, and about 31.52 million won per employee is required as a bonus.

According to the steel industry on the 27th, the Hyundai Steel Branch of the Korean Metal Workers' Union of the Korean Confederation of Trade Unions is scheduled to hold a temporary delegate meeting on the 28th to finalize the '2023 wage negotiation request'.

The draft Hyundai Steel union's demand for wage negotiations also includes a ▲ basic salary increase of KRW 184,900 (excluding the increase in salary) ▲ maximum sales special incentive of KRW 5.8 million ▲ extension of the retirement age. It is the same level as Hyundai Motor's labor union demanded from the company. The labor union of Hyundai Steel is said to have drafted the demand based on the company's highest sales since its establishment last year and its high level of productivity.

Last year, Hyundai Steel's labor union occupied the president's office for 146 days and staged a 62-day guerrilla strike, demanding special incentives at the same level as other group companies such as Hyundai Motor and Kia. Hyundai Steel posted an operating loss of KRW 276 billion in the fourth quarter of last year as the steel market worsened and strikes combined.

Hyundai Steel succeeded in turning into a surplus in the first quarter of this year, but its performance has been weak amid concerns over an economic slowdown. It is not easy for the company to accept the union's demands. Hyundai Steel posted an operating profit of 333.9 billion won in the first quarter of this year, down 52.1% from a year earlier. The gap is wide from Hyundai Motor's first-quarter operating profit of KRW 3.5927 trillion, up 86.3% from last year.

Hyundai Steel's labor union plans to hold wage negotiations with the company from next month after a temporary delegate meeting on the 28th.

 

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