Union agrees with HHI on wage raise

The nation’s leading shipbuilder Hyundai Heavy Industries and its labor union reached a tentative agreement on the issue of raising wages, ending a seven-month tug-of-war on the last day of 2014.

The company said on Wednesday that its labor union has agreed to the terms offered by the company and said it will give: a base pay raise of 37,000 won ($33.9), which is a 2 percent increase; part of the workers’ annual bonus as a 2 million won lump sum and part in the form of a month and a half worth of salary in company shares.

HHI also agreed to give workers a special day off on February 23 and to extend the retirement age from 58 to 60.

The union and management of the nation’s largest shipbuilder have held more than 50 rounds of negotiations over the wage issue since May 14. The union demanded a raise of 132,013 won on its monthly base pay and a two and a half month bonus.

In response, the company offered a 37,000 won raise and a 5 million won bonus and said it would extend the retirement age.

But the company said it could not accept the union’s base wage raise demand because of its current financial situation. The company has suffered losses of 3 trillion won ($2.69 billion) last year.

The union refused the offer and went on strike on Nov. 27 for the first time in 20 years.

The company said the agreement will take effect if a majority of union members approve the deal in a vote on Jan. 7.

BY KWON SANG-SOO [sakwon80@joongang.co.kr]