Hyundai Steel, an ordinary suit su … Expected to support 350 billion won (Full)

Hyundai Steel Dangjin Factory © News1 © News1

Hyundai Steel lost some of its losses in the first trial of ordinary wage laws by some 6,800 workers. The company is expected to pay 350 billion won for the trial in question. Hyundai Steel said it expects its third quarter financial statements to reflect the cost of the lawsuit.

On November 25, 11 of the civil suits filed in Incheon District Court took the preliminary injunctions of the plaintiffs in a trial involving a total of KRW 70.4 billion of wage claims filed by 2,933 workers at Hyundai Steel's Dundjin factory. The judge also made the same ruling on the cases of Hyundai Steel Incheon and the 3,885 employees of Pohang Factory, for an amount equivalent to 85 billion won.

It is estimated that the amount charged to Hyundai Steel as a result of this trial is about 100 billion won, or about two-thirds of the amount raised.

The lawsuit concerning the regular salaries of Hyundai Steel has been ongoing for five and a half years. In April 2013, employees of Hyundai Steel Incheon and the Pohang Plant sued in May 2010 to pay regular pay and retroactive pay for various severance pay and severance pay.

In May of the same year, workers at the Dangjin factory also instituted separate prosecutions and were tried by the same court. The court ruled that the two trials had been adjourned last August, but the plaintiffs were delayed four times as the company raised the issue of calculating unpaid wages and delaying data submission.

In the meantime, the Hyundai Steel union has filed separate lawsuits against non-paying companies since 2013, and the results of this trial are likely to impact future testing.

Hyundai Steel said: "Based on the decisions, the company will pay about 350 billion won to cover all the legal proceedings initiated so far." The actual impact will be reflected in the financial statements of the third quarter of this year after receipt of the decision. "He said.

The company is expected to reflect the results of the revised disclosure, although the cost of the lawsuit is not taken into account in the announcement of the third quarter results on August 26, due to the fact that the exact amount does not reflect the results of the revised disclosure. has not been calculated yet. When the securities market estimates that Hyundai Steel's third-quarter operating profit is around 380 billion euros, quarterly apparent operating profit will likely strongly reflect litigation costs.