Hyundai Steel Co., South Korea's second-biggest steelmaker, said Tuesday it has signed a wage deal with its labor union for the year of 2024 following multiple strikes and the temporary suspension of a production facility.
The company has agreed on an increase of 101,000 won ($71) in monthly basic salary and 4 1/2 months of salaries plus 10.5 million won in bonuses, a company spokesperson said.
The union said it signed what it called an "unsatisfactory" deal as an ongoing global trade war, a prolonged downturn in the steel industry and the company's emergency management mode are expected to further weigh on unionized workers' lives.
On March 14, Hyundai Steel entered an emergency management mode to cope with growing challenges, including the imposition of 25 percent tariffs on steel imports by the U.S. government and continued strife with unionized workers.
The company temporarily suspended its cold-rolled steel facility in Dangjin, about 80 kilometers southwest of Seoul, from Feb. 24 to March 31 in the wake of a monthslong strike by its workers demanding pay hikes.
The pickling line/tandem cold mill facility is a key part of the company's integrated steel mill in Dangjin.
Moreover, one of its three domestic steel reinforcement bar (rebar) plants will be closed for the entire month of April due to an oversupply in the market, the company said earlier.
In response to Trump's tariffs, Hyundai Steel recently announced a plan to invest $5.8 billion and build an electric arc furnace-based integrated steel mill in Louisiana by 2029, with an aim to start production in the same year. (Yonhap)
