Shipbuilding Labor Talks Hit Fresh Snags After Tentative Deal Rejected

Shipbuilding labor negotiations experienced fresh setbacks after a tentative agreement was rejected by union members. HD Hyundai Heavy Industries and its union saw 52.14% of 7,541 participating members vote against the tentative wage and collective bargaining agreement on September 2nd, leading to its rejection. This deal offered an average of 40.56 million won ($30,129) per member, including a 120,000 won raise in base pay and an 11 million won lump-sum payment, but it did not meet workers' expectations.

Last year, it took two additional months and a full strike following the initial agreement rejection to reach a final deal. This year, the union is seeking a 30% share of operating profit, which complicates the path to renegotiation. The union intends to gather member opinions before formally requesting a renegotiation with management, while maintaining the option for a full-scale strike after the Chuseok holiday and a potential joint strike with Hanwha Ocean's union.

Hanwha Ocean now faces additional challenges following a court ruling that required it to negotiate with Welliv, a subcontractor union. The court ruled against Hanwha Ocean's request for a stay of execution of a corrective order issued by the National Labor Relations Commission, stating that the company must engage in collective bargaining with workers at Welliv pending a final ruling on the merits.

Hanwha Ocean agreed to negotiate in line with the court's decision, while the Korean Metal Workers' Union urged the primary contractor to fulfill its responsibilities. Despite the rejection rate being lower than last year's 60%, the union has not yet launched a full strike, leaving room for a relatively quick resolution of a second tentative agreement.

Management expressed regret over the rejected agreement, citing it as the highest-level package in the shipbuilding industry, and emphasized their commitment to finding a solution for sustainable long-term competitiveness.