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According to South Korean A533 Type E steel media reports, the Hyundai Steel Union announced that it will launch a 24-hour comprehensive strike on March 26, 2025, and organize a large-scale rally at the Tangjin Steel Plant in Chungcheongnam do on the same day. This will be the second strike of the union this year, reflecting the ongoing stalemate between labor and management on key issues such as performance bonuses and collective agreements.
Since September 2023, Hyundai A533 Type E steel Steel and labor unions have engaged in multiple rounds of negotiations regarding salary and benefits, but have been unable to reach a consensus. The company's recent proposal includes a performance bonus equivalent to 450% of the basic salary and a one-time payment of 10 million Korean won (approximately $6800), but it was rejected by the union. The union demands the highest level of treatment within the group and expresses dissatisfaction with the 2022 agreement being lower than other subsidiaries.
In February of this year, the labor union launched a partial strike, resulting in a production reduction of about 270000 tons of cold-rolled steel plates and causing economic losses of about 25.4 billion Korean won (approximately 19 million US dollars). In this strike, for the first time in modern iron production history, the operation of pickling and tandem cold rolling mill (PL/TCM) equipment was suspended due to labor disputes. The equipment was shut down for 16 days and resumed operation on March 11, 2025. However, subsequent negotiations once again reached a deadlock, and the union subsequently resumed a rotating strike on PL/TCM and continuous galvanizing line (CGL).
According to the financial report, Hyundai Steel's operating profit reached 2.3 trillion Korean won in 2021, with an operating profit margin of 12%. At that time, the company provided employees with a bonus of 300% of their basic salary and a fixed bonus of 13.3 million Korean won. In contrast, despite a 14% decrease in operating profit and a profit margin of only 1.5% during the same period, Hyundai Motor's employees received more favorable incentive benefits, including a 200% bonus to their basic salary, a fixed bonus of 5.5 million Korean won, an additional 100% special incentive, and 20 shares of company stock. The total incentive amount exceeded that of Hyundai Motor by about 4 million Korean won. The pay gap is seen as an important trigger for the current salary dispute.
In 2023, although Hyundai Steel agreed to issue a fixed bonus of 30 million Korean won, due to changes in the market environment, its annual revenue decreased by 9% year-on-year to 21.61 trillion Korean won (approximately 14.7 billion US dollars), operating profit decreased by 56% year-on-year, and profit margin dropped to 3.0%. By comparison, Hyundai Motor's revenue will grow to KRW 78.03 trillion (approximately USD 53.2 billion) in 2023, with a significant increase in operating profit to KRW 6.67 trillion and a profit margin of 8.5%.
According to A533 Type E steel market analysis, if the strike on March 26, 2025 cannot be resolved in the short term, it may cause further disruption to the production and delivery of modern iron cold rolling and galvanized products, affecting its overseas customer supply and performance capabilities. Continuous attention should be paid to the progress of subsequent labor management negotiations and their associated impact on downstream steel industries.
