[비즈한국] The wage and collective bargaining agreement at IPARK Hyundai Development Company has been finalized following the fourth round of mediation by the National Labor Relations Commission (NLRC). The labor-management negotiations, which began in January of this year, faced nearly six months of difficulties over compensation levels, including wage increase rates and performance bonuses. With the long-standing negotiations concluded through the mediation process, the burden has been lifted for both sides.
According to industry sources on the 16th, labor and management at IPARK Hyundai Development Company drafted and signed a 2026 wage and collective bargaining agreement during the fourth NLRC mediation session that day. After failing to find common ground in the first session on the 1st, the second on the 6th, and the third on the 14th, a final agreement was reached at the fourth meeting. The session was held on-site at the company headquarters.
The wage increase rate agreed upon by both parties is 4% for those with a B+ performance rating. According to the agreement, the 2026 wage increase rates by performance rating are as follows: S 8.5%, A 5.5%, B+ 4.0%, B 3.5%, C 2.5%, and D -2.0%. The wage increases will be applied retroactively to January 1, 2026, though those who joined after January 1 or resigned before the payday are excluded.
Labor and management also reached an agreement on performance bonuses for the first time in four years. The bonus payout rate is set at 50%, based on an amount that includes base salary, recognized labor allowances, and position-based pay. Although the company’s initial proposal was a fixed incentive of 2 million won per person, the final agreement included a percentage-based performance bonus scheme.
Employee welfare items were also included in the final agreement. Starting in 2026, the company will allow all employees to participate in a lottery to utilize two rooms at the Oak Valley Resort, which is operated by an affiliate. Additionally, employees who used 10 or more days of annual leave in 2026 will be granted one additional "Family Day." This Family Day can be used until January 31, 2027.
The two sides set the validity period of this collective agreement at two years. In the future, for years when the collective agreement and the one-year wage agreement coincide, they will be concluded in parallel. The labor union explained that since the NLRC mediation agreement holds the same legal force as a collective agreement, it is accepted without a separate vote by union members. This essentially concludes both the wage and collective bargaining negotiations simultaneously.
This year’s wage and collective negotiations were long and difficult. On the 18th of last month, IPARK Hyundai Development Company presented a wage proposal to the union that included a 4.0% raise for a B+ rating and a 2 million won incentive per person. The union had been demanding a 4.6% raise for a B+ rating, a 150% performance bonus, and improvements to welfare-related systems. The two sides showed a wider gap in positions regarding the method of performance compensation rather than the wage rate itself.
In particular, performance bonus payments have been a recurring issue in recent labor negotiations. Labor and management at IPARK Hyundai Development Company experienced a strike during the negotiation process in 2023 over performance bonuses and other issues. They also disagreed over whether to pay performance bonuses during the 2024 and 2025 negotiations. Ultimately, the performance bonuses requested by the union over the past three years were not reflected in previous final agreements.
This year's wage negotiations were considered burdensome for both sides, coinciding with the company's 50th anniversary and a sluggish construction market. The union viewed this year as an opportunity for members and employees to receive fair compensation, while the company maintained a cautious stance, citing management conditions. Last year, IPARK Hyundai Development Company’s consolidated operating profit was 248.6 billion won, a 34.7% increase from the previous year, and net profit increased by 1.6% to 158.1 billion won.
Kim Dong-hyun, chairman of the Hyundai IPARK Labor Union, stated, "After repeated mediation meetings with the NLRC, we have secured the payment of performance bonuses in this, our 50th anniversary year," adding, "I am grateful to the members who have waited, and we will continue to strive and communicate as a labor union based on this year's achievements."