Labor talks at South Korea's shipbuilders have been thrown into disarray after workers at HD Hyundai Heavy Industries (329180) rejected a tentative wage deal and employees at Hanwha Ocean (042660) climbed a crane in protest. Hanwha Ocean's management urged the union to "stop the illegal occupation of the crane and continue productive discussions at the negotiating table."
HD Hyundai Heavy Industries and its union are preparing for follow-up negotiations after members voted down a tentative wage and collective bargaining agreement on the 2nd, according to industry sources on the 11th. The union is currently gathering internal opinion, sources said. No specific negotiating schedule has been set.
In the ratification vote on the 2nd, 47.58% of members voted in favor and 52.14% against. The tentative deal included a 120,000 won increase in monthly base pay, including seniority-based raises, a lump-sum payment of 11 million won plus a bonus equal to 200% of monthly base pay, and performance-based bonuses.
The size of the base pay increase is expected to be the central issue in further talks. The fixed-pay increase fell short of members' expectations, which was seen as the main reason for the rejection. In bargaining in 2024 and last year, the company and the union agreed to base pay increases of 130,000 won and 135,000 won, respectively.
The union may also escalate industrial action to extract a better offer. During this year's negotiations, it staged seven partial strikes involving all members to press management.
An HD Hyundai Heavy Industries official said it was "regrettable that a tentative agreement at the highest level in the shipbuilding industry failed to win members' approval," adding that the company "will continue to seek solutions in future negotiations that balance reasonable compensation for performance with sustainable competitiveness."
Hanwha Ocean has yet to produce even a tentative agreement despite intensive bargaining after the Chuseok holiday. At talks on the 7th, management offered a total increase of 138,689 won, consisting of 115,000 won in base pay and 23,689 won in seniority and promotion-related raises, along with a lump-sum payment of 7.5 million won, but the two sides failed to reach a deal.
On the 8th, Kim Yu-cheol, head of the Korean Metal Workers' Union chapter at Hanwha Ocean, climbed a Goliath crane at the Geoje shipyard and began a sit-in. It was the first time the permanent employees' union had joined such a protest since 2019, when the company was still Daewoo Shipbuilding & Marine Engineering. Six workers, both directly employed and subcontracted, are currently staging protests on the crane and on factory roofs.
Jung In-sub, president and head of Hanwha Ocean's management support division, said the "illegal high-altitude protest threatens both on-site safety and production activity, and as a member of management I express grave concern." Jung added that "both those working and those staging the protest may lose concentration, creating situations that could harm safety, so exceptional caution is required."
Jung also said that "illegal occupation undermines future performance and the foundation we stand on, and helps no one," stressing that "if the union wants to narrow the gap and move toward concluding negotiations, it should set out its specific demands and continue discussions at the negotiating table rather than atop a crane."