Labor-management tensions are intensifying at HD Hyundai Heavy Industries and Hanwha Ocean. The union at HD Hyundai Heavy Industries has expanded its partial strike, which covers all members, beyond the original plan, while union chairmen from both companies have climbed onto cranes to conduct an indefinite high-altitude protest. Disagreements between labor and management over wage increases and profit sharing, driven by a boom in the shipbuilding industry, show little sign of being resolved.
According to shipbuilding industry sources on Monday, the HD Hyundai Heavy Industries branch of the National Federation of Metal Workers will conduct partial strikes involving all members for five days, from today through the 23rd.
The strikes will run from 9 a.m. to 5 p.m. daily, excluding lunch breaks, for seven hours each day. Initially, the union had planned four-hour strikes involving officials on the 19th and 20th, followed by seven-hour strikes involving all members from the 21st to the 23rd, but it expanded both the scope of participation and the duration starting from the first day of the strike.
This partial strike involving all members is the second of this year, following one on September 11. Labor and management had reached a preliminary agreement on the 30th of last month, which included a base salary increase of 120,000 won, an incentive bonus of 200%, and a lump-sum payment of 11 million won.
However, the proposal was rejected in a member vote held on the 2nd of this month, with 52.14% voting against it. Subsequently, despite two rounds of re-negotiations on the 13th and 15th of this month, no additional agreement was reached, prompting the union to intensify pressure on management.
Kim Dong-ha, chairman of the HD Hyundai Heavy Industries branch, also began an indefinite high-altitude protest by climbing onto a crane approximately 25 meters high at the Ulsan headquarters' Main Assembly Plant No. 1 around 5 p.m. the previous day. The union is demanding a base salary increase of 149,600 won (excluding seniority-based increments) and a 100% increase in bonuses in this year's labor-management negotiations.
As securities firms forecast that HD Hyundai Heavy Industries' annual operating profit will reach around 4 trillion won this year, the union has launched the high-altitude protest to urge for wage increases and performance-based pay distribution commensurate with improved results.
On the other hand, management evaluates its existing preliminary agreement, which includes a base salary increase of 120,000 won (including seniority-based increments), as the highest level in the shipbuilding industry, while proposing an expansion of variable pay such as incentive bonuses.
An official from HD Hyundai Heavy Industries said, "We have earnestly engaged in negotiations to conclude them smoothly," adding, "We will do our utmost to resolve the current situation promptly and restore normalcy to the negotiations."
Labor-management conflicts are also dragging on at Hanwha Ocean. Following practical-level negotiations held today, labor and management are scheduled to conduct their 29th main negotiation session on the 20th.
The union is demanding a base salary increase of 149,600 won, improvements to the rehiring system for retirees, and expanded recruitment of new personnel, while management is countering with a proposed base salary increase of 138,689 won. As negotiations have failed to find common ground, the union continues to hold partial strikes of four or seven hours, involving all members at least once a week.
Kim Yu-cheol, chairman of the Hanwha Ocean branch of the Metal Workers' Union, is also in his 12th day of high-altitude protest. Kim climbed onto a crane at the Geoje business site in South Gyeongsang Province on the 8th and is conducting an indefinite protest demanding wage increases and improvements to the performance pay system.
A subcontractor union, which began its high-altitude protest on the 30th of last month, has also continued its protest for 20 days, demanding a settlement in negotiations with the main contractor.
In response, management maintains that the union should present specific demands at the negotiation table rather than making abstract requests such as "presenting an acceptable company proposal."
An official from Hanwha Ocean said, "We must reflect on whether the negotiation process and proposals to date were so extreme that they led us down a 'path of mutual destruction,' or whether it was necessary to engage in illegal acts beyond legal dispute actions," adding, "If the union wishes to narrow the current gap and conclude negotiations, we ask that discussions continue at the negotiation table rather than on top of cranes."
in INDUSTRY
