April 25, 2024
Industrials
HHI union calls first ‘full strike’ in 22 years
[THE INVESTOR] Hyundai Heavy Industries’ union has opted for full strikes for the first time in 22 years to protest the company’s restructuring measures, and to pressure the management in this year’s negotiations.
On Feb. 23, the union began an eight-hour strike starting at 8 a.m. This is the first time the HHI union has gone on a “full strike” since 1995. The union, however, has staged partial strikes lasting up to seven hours since 1995.
The union also plans to strike on Feb. 24 and 27 in a show of force against restructuring plans, and this year’s wage negotiations.
As part of the restructuring measures, the company plans to divide its businesses into several new subsidiaries.
According to the plans, revealed on Jan. 18 in a regulatory filing, three new subsidiaries will be spun off from the shipbuilder, and the newly formed subsidiary specializing in robotics would serve as the de facto holding firm for the group.
The move, which the company claims is inevitable for survival, has sparked off speculations that the group’s “owner” Chung Mong-joon is attempting to tighten his grip to lay the grounds for his son.
Chung is HHI’s honorary chairman and largest shareholder with 10.15 percent of shares, and it is widely expected that he will hand over the reins to his eldest son, 34-year-old Chung Ki-sun.
The spun off companies are tentatively named Hyundai Robotics, Hyundai Construction Machinery and Hyundai Electric and Energy System.
Chung will hold 10.15 percent of HHI, and the three new companies that are scheduled to be set up on April 1.
Hyundai Robotics would hold 13.37 percent of the two new companies, as well as HHI, and 91.1 percent of Hyundai Oilbank. Hyundai Robotics would also take a 7.98 percent stake in Hyundai Mipo Dockyard.
Hyundai Mipo will hold 7.98 percent each in HHI, which will take 94.9 percent of Hyundai Samho Heavy Industries’ stake, and the three new subsidiaries.
By Choi He-suk (cheesuk@heraldcorp.com)
On Feb. 23, the union began an eight-hour strike starting at 8 a.m. This is the first time the HHI union has gone on a “full strike” since 1995. The union, however, has staged partial strikes lasting up to seven hours since 1995.
The union also plans to strike on Feb. 24 and 27 in a show of force against restructuring plans, and this year’s wage negotiations.
As part of the restructuring measures, the company plans to divide its businesses into several new subsidiaries.
According to the plans, revealed on Jan. 18 in a regulatory filing, three new subsidiaries will be spun off from the shipbuilder, and the newly formed subsidiary specializing in robotics would serve as the de facto holding firm for the group.
The move, which the company claims is inevitable for survival, has sparked off speculations that the group’s “owner” Chung Mong-joon is attempting to tighten his grip to lay the grounds for his son.
Chung is HHI’s honorary chairman and largest shareholder with 10.15 percent of shares, and it is widely expected that he will hand over the reins to his eldest son, 34-year-old Chung Ki-sun.
The spun off companies are tentatively named Hyundai Robotics, Hyundai Construction Machinery and Hyundai Electric and Energy System.
Chung will hold 10.15 percent of HHI, and the three new companies that are scheduled to be set up on April 1.
Hyundai Robotics would hold 13.37 percent of the two new companies, as well as HHI, and 91.1 percent of Hyundai Oilbank. Hyundai Robotics would also take a 7.98 percent stake in Hyundai Mipo Dockyard.
Hyundai Mipo will hold 7.98 percent each in HHI, which will take 94.9 percent of Hyundai Samho Heavy Industries’ stake, and the three new subsidiaries.
By Choi He-suk (cheesuk@heraldcorp.com)
![[From the Scene] KG Mobility poised to take next leap](http://res.heraldm.com/phpwas/restmb_idxmake.php?idx=151&simg=/content/image/2024/04/24/20240424050621_0.jpg)
