Wage talks at South Korea’s HD Hyundai Heavy Industries and Hanwha Ocean are expected to resume on September 29 amid union warnings of further action.
HD Hyundai Heavy Industries asked its union to restart talks on that date after negotiations broke down on September 18 following 21 rounds. Hanwha Ocean’s 24th round ended without agreement on September 22, with further talks expected after the Chuseok holiday.
Hanwha Ocean workers stopped all four Goliath cranes at its Geoje shipyard for 24 hours on September 18 during an eight-hour general strike. About 140 operators across the morning and afternoon shifts stopped work.
Hanwha Ocean’s president said in a message to employees that the stoppage was, “causing serious disruption to production,” and could affect business performance and employees’ bonuses.
Hanwha Ocean’s union wants monthly base pay raised by KRW149,600 ($110) and bonuses increased from 800 to 900 per cent. It also wants the retirement age extended and a more predictable performance-pay formula.
A union official told Chosunbiz: “Under the current system, we cannot know the criteria for paying performance bonuses.”
The company’s proposal at the 24th round included a KRW123,689 base-pay increase and a KRW6.5 million lump sum.
At HD Hyundai Heavy Industries, workers voted to strike in August, with 5,379 of 8,127 union members backing action. They held a four-hour walkout on September 11 and seven-hour stoppages from September 16 to 18.
After the talks broke down, the union said: “We will move beyond partial strikes to an all-out struggle that causes a tangible impact on production.”
The union wants a KRW149,600 monthly base-pay increase excluding seniority increments and a 100 per cent increase in bonuses. It is also seeking a share of at least 30 per cent of operating profit.
In its third offer, the company proposed raising base pay by KRW110,000, including a KRW47,000 seniority increment, alongside incentive pay of 200 per cent plus KRW10 million. It also offered KRW500,000 in gift vouchers.
Meanwhile, Samsung Heavy Industries’ agreement won approval from members with 58.78 per cent support, putting it ahead of the country’s other two major shipbuilders in concluding this year’s wage negotiations.