Hanwha Ocean, HD Hyundai Remain Locked In Strike Disputes

The domestic shipbuilding industry is experiencing a major boom due to the promotion of a South Korea-United States shipbuilding cooperation project and a surge in demand for high-value-added ships. However, this growth is accompanied by growing pains, as disagreements between labor unions and management over the distribution of performance and wage negotiations threaten the industry's stability.

Samsung Heavy Industries became the first "Big 3" shipbuilder to settle its wage negotiations, approving a tentative agreement that increased the basic wage by 5.2% and provided an encouragement bonus of 7 million won. This agreement was reached after a 58.78% approval rate among union members, with the new standard for calculating the Excess Profit Incentive (OPI) being reduced from 20% of Economic Value Added (EVA) to 10% of operating profit.

The improved transparency of performance distribution is expected to pave the way for better labor-management coexistence.

Meanwhile, Hanwha Ocean and HD Hyundai Heavy Industries remain locked in dispute, with the labor unions demanding a basic wage increase of 149,600 won, expanded bonuses, and a written performance bonus standard. The management, on the other hand, has proposed a task force to improve the performance bonus system, but the union has rejected the proposal. In response, Hanwha Ocean has halted the operation of key cranes, warning of potential disruptions in subsequent construction processes.

HD Hyundai Heavy Industries has also intensified its strike, submitting a third proposal that includes a basic wage increase of 110,000 won, a 10 million won encouragement bonus, and a 200% share of operating profit. However, the union remains firm in its demand for a 149,600 won basic wage increase and a 30% distribution of operating profit. The union has announced a full-scale struggle, including a joint strike with other industry unions after the Chuseok holidays.

The shipbuilding industry is concerned about the potential consequences of prolonged production disruptions, particularly during a critical period when South Korea and the United States are striving to strengthen strategic cooperation in shipbuilding and defense sectors. If strikes continue, cost burdens such as liquidated damages for delays could increase, and the external reliability of domestic shipyards may decline, weakening the driving force behind major defense and export projects.

The industry is closely monitoring the impact of Samsung Heavy Industries' settlement on other companies in prolonged negotiations, as it may set a precedent for future labor-management disputes.