Labor negotiations in the shipbuilding industry, particularly between HD Hyundai Heavy Industries and its labor union, have returned to uncertainty following the rejection of a temporary agreement. On September 2, 52.14% of the 7,541 participating members voted against this agreement, which included a 120,000 won increase in the base wage and a one-time payment of 11 million won.
Details of the rejected agreement
This temporary agreement, recognized as a record-breaking package with an average of 40.56 million won (approximately $30,129) for each union member, failed to meet the high expectations of the workers. Nevertheless, workers hoped that a better agreement would soon be reached given the ongoing negotiations.
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New challenges for Hanwha Ocean
Meanwhile, Hanwha Ocean is facing new challenges. The Seoul Administrative Court rejected the company's request to suspend the implementation of a corrective order from the National Labor Relations Commission. This decision means that Hanwha Ocean must participate in collective negotiations with Welliv workers, a subcontractor responsible for internal welfare and facility management.
The Administrative Court stated that Hanwha Ocean's commitment to participate in collective negotiations does not equate to an unconditional acceptance of the union's demands, and therefore it cannot be easily concluded that the company will suffer irreparable harm. The National Labor Relations Commission also emphasized that Hanwha Ocean has significant control over the matters requested by the Welliv union.
Hanwha Ocean has announced that it will continue negotiations in accordance with the court ruling, while the Korean Metal Workers' Union has urged the main contractor to fulfill its responsibilities promptly. Although Hanwha Ocean has continued daily negotiations during the Chuseok holiday, the combination of intense protests from the subcontractor union and the scope of the negotiation topics is likely to prolong until another temporary agreement is reached.
Some observers have noted that the rejection rate at HD Hyundai Heavy Industries during this period was 52%, which is lower than the 60% range of last year, and the union has not yet initiated a full strike, indicating the possibility of reaching a new temporary agreement in a relatively short time.
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