Seoul: Hyundai Steel Co., South Korea's second-largest steelmaker, announced the successful negotiation of a wage agreement with its labor union for 2024. This development follows a series of strikes and a temporary suspension of one of its production facilities.
According to Yonhap News Agency, the agreement includes an increase of 101,000 won (US$71) in the monthly basic salary. Additionally, employees will receive 4 1/2 months of salaries plus 10.5 million won in bonuses. However, the union described the agreement as "unsatisfactory" due to the ongoing global trade war, the prolonged downturn in the steel industry, and the company's emergency management mode, which are expected to continue impacting the lives of the workers.
Hyundai Steel entered an emergency management mode on March 14 to address challenges such as the 25 percent tariffs on steel imports imposed by the U.S. government and ongoing disputes with unionized workers. As part of these measures, the company temporarily halted operations at its cold-rolled steel facility in Dangjin from February 24 to March 31, following a protracted strike by workers demanding pay increases.
The facility, known as the pickling line/tandem cold mill (PL/TCM), plays a crucial role in Hyundai Steel's integrated steel mill operations in Dangjin. The company also announced the closure of one of its three domestic steel reinforcement bar (rebar) plants for the entire month of April due to market oversupply.
In response to the U.S. tariffs, Hyundai Steel has unveiled plans to invest $5.8 billion in constructing an electric arc furnace-based integrated steel mill in Louisiana. The project aims to commence production by 2029, signaling the company's strategic efforts to mitigate the impact of international trade challenges.