Wage and collective bargaining negotiations in South Korea's shipbuilding industry seem to be prolonged. Among the three major shipbuilding companies (HD Hyundai Heavy Industries, Hanwha Ocean, Samsung Heavy Industries), Samsung Heavy Industries concluded its wage negotiations on September 23, while HD Hyundai Heavy Industries and Hanwha Ocean are striving to reach labor-management agreements.
Challenges of Negotiations at HD Hyundai Heavy Industries
HD Hyundai Heavy Industries must resume negotiations after a temporary agreement reached on September 30 was rejected in a union vote (Korean Metal Workers' Union, HD Hyundai Heavy Industries branch) on September 2. Union leadership expects to exert more pressure on management, including the possibility of a general strike, which reflects members' dissatisfaction with the temporary agreement.
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Complex Negotiations at Hanwha Ocean
The situation for Hanwha Ocean is more complicated. The company must conduct simultaneous negotiations not only with the regular workers' union but also with the contractors' union (Korean Metal Workers' Union, shipbuilding contractors' branch Gojateng Yong-gosung) and the Welliv union, a partner company providing cafeteria services and transport buses (Welliv branch). This issue arose after a court ordered Hanwha Ocean on September 1 to consider the Welliv branch as a party to collective bargaining.
According to shipbuilding industry information on September 7, workers and management at HD Hyundai Heavy Industries are preparing for renegotiation after the temporary agreement was rejected with 52.14% opposition in the union vote. Union leadership has been gathering members' opinions.
An HD Hyundai Heavy Industries official said, "The timeline for resuming negotiations is not yet determined, and we will set it in consultation with the union." On September 30, workers and management at HD Hyundai Heavy Industries established a temporary agreement that included an increase in the monthly base salary of 120,000 won (including 50,000 won for step increases), a one-time payment of 11 million won, and a 200% competitiveness support bonus (based on the stipulated salary) and a performance bonus.
This agreement followed President Lee Jae-myung's attendance at the launch ceremony of the third Aegis ship (Daehokimjongseo) at the Ulsan shipyard. According to workers and management, this temporary agreement will impact the average wage increase by 40.56 million won, which is 10.61 million won more than last year. However, this agreement did not include the union's main demand in this year's wage negotiations for "at least 30% of operating profits to be paid as a performance bonus."
Hanwha Ocean has also yet to reach an agreement with the regular workers' union. As of September 30, workers and management at Hanwha Ocean have changed negotiations from twice a week to every day.
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