South Korea’s Hyundai Steel has suspended operations at its cold-rolled steel plant in Dangjin, South Chungcheong, following a monthlong strike by workers demanding pay increases, according to local media reports. The company halted its pickling line and tandem cold mill facility on Monday and stated that operations will remain suspended until unionized workers end their strike.
The shutdown is expected to result in production losses of at least 270,000 tons. Hyundai Steel described the move as a defensive measure as wage negotiations with the labor union remain stalled since late January.
The union is demanding a KRW 159,800 (USD 111) base pay increase, five months’ salary in performance-based pay, and a KRW 18 mln (USD 12,516) cash bonus for 2024. Hyundai Steel rejected the proposal, offering instead a KRW 100,000 (USD 69.5) pay raise, 4.5 months’ salary, and a KRW 10 mln (USD 6,9530 bonus. The company argued that accepting the union’s demands would cause a 98pct drop in annual net profit.
1 USD / 1,438.18 KRW
