Shipbuilding Labor Talks Hit Fresh Snags After Tentative Deal Rejected

Shipbuilding labor negotiations experienced fresh setbacks after a tentative agreement between HD Hyundai Heavy Industries and its union was rejected by union members. The union reported that 52.14% of the 7,541 participating members voted against the agreement on Sept. 2, leading to its rejection. Despite being a record-breaking package offering an average of 40.56 million won per member, including a 120,000 won pay increase and an 11 million won lump-sum payment, it fell short of workers' expectations.

Last year, the union reached a final agreement after two additional months of negotiations and a full strike following the initial agreement's rejection. This year, with expected operating profits doubling, the union now demands a 30% share of operating profit, complicating renegotiation talks. The union will consult members before formally requesting renegotiation with management, while considering a full strike post-Chuseok holiday and a potential joint strike with Hanwha Ocean union.

Hanwha Ocean must now engage in collective bargaining with Welliv, a subcontractor, following a court ruling. The court rejected Hanwha Ocean's application for a stay of execution, meaning it must negotiate with Welliv pending a final ruling. Despite the subcontractor union branch's high-altitude protest and expanded bargaining subjects, negotiations are expected to take time before a tentative agreement can be reached.

However, the rejection rate this year was lower at 52% compared to 60% last year, and the union hasn't launched a full-scale strike yet, suggesting a relatively quick resolution to a second tentative agreement is possible. Management expressed regret over the rejection and emphasized its commitment to finding a solution for sustainable long-term competitiveness.