Hyundai Steel Reaches Tentative Wage Agreement After Strike Threat
Key Takeaways
- •Hyundai Steel reached a tentative wage agreement on July 31 after roughly 80 days of negotiations that commenced on May 8.
- •The compensation package includes an 80,000 won base salary increase, a performance bonus of 300% plus 5,000,000 won, and 300,000 won in Onnuri gift certificates.
- •The union had declared negotiations broken on June 9 and subsequently obtained the right to strike following a member vote with over 90% approval.
- •Separate bonuses of 2,500,000 won each were designated for carbon-reduced steel plate mass production and for the establishment of a new labor-management culture.
- •The tentative agreement must be ratified by a majority vote across all Hyundai Steel union branches before it is formally finalized.
Hyundai Steel's labor and management have reached a tentative agreement on the 2026 wage and collective bargaining agreement, moving toward business normalization despite a prolonged downturn in the steel industry.
According to Hyundai Steel, the two sides finalized a tentative deal following intensive negotiations held on the morning of July 31. The agreement comes roughly 80 days after formal talks began with a kickoff meeting on May 8.
The centerpiece of the agreement covers wage increases and performance-based compensation. Specifically, the deal includes an 80,000 won increase in base salary, a performance bonus equivalent to "300% + 5,000,000 won" (approximately $3,846), and 300,000 won (approximately $231) in Onnuri gift certificates.
The performance bonus comprises several components: a 200% management performance bonus and a 100% livelihood stabilization support fund. Additionally, a 2,500,000 won (approximately $1,923) encouragement bonus tied to the mass production of carbon-reduced steel plates and a separate 2,500,000 won commemorative bonus marking the establishment of a new labor-management culture were each allocated.
The path to agreement was contentious. Although both sides signaled a willingness to settle early by beginning negotiations three months ahead of the usual schedule in previous years, talks stalled as the union's demands met the company's cautious approach amid a weakening steel market.
At the seventh round of negotiations on June 9, management maintained that further review was necessary, prompting the union to immediately declare a breakdown in talks. The union subsequently filed for labor dispute mediation with the National Labor Relations Commission and secured the right to industrial action after a member vote yielded an approval rate exceeding 90%.
With that strike risk in the background, the return to talks helped the two sides avoid a work stoppage and move toward a package that both labor and management described as practical. The tentative agreement now goes to ratification procedures across each branch of the Hyundai Steel union, where members will vote to approve or reject the deal. If a majority supports it, the 2026 wage and collective agreement will be formally finalized.
Source: Business Korea