HD Hyundai Heavy Industries reaches tentative labor deal

HD Hyundai Heavy Industries and its union reached a second tentative agreement on this year's wage and collective bargaining terms Friday, centering on a base pay increase of 120,000 won ($91), offering a potential breakthrough in protracted negotiations.

The two sides struck the deal at their 26th round of talks at the company's Ulsan headquarters, agreeing on a base pay raise of 120,000 won — including a 55,000-won seniority increment — a one-time payment of 11.5 million won plus 200 percent of contracted wages, and welfare points worth 300,000 points for this year only. They also agreed to change the severance pay calculation basis from three months for HHI (Hyundai Heavy Industries) and six months for HMD (Hyundai Mipo Dockyard) to any three consecutive months of the employee's choosing from the preceding four months.

The union said it would hold a ratification vote among all members on Tuesday.

The two sides had reached a first tentative agreement on Sept. 30, following their initial meeting on June 2, but union members voted it down. The union has been staging a partial strike of seven hours a day since Monday.