Korea shipbuilders stall in wage talks as Hanwha Ocean faces multi-union fight

Shipbuilding industry wage negotiations in South Korea are facing obstacles, particularly at Hanwha Ocean. While Samsung Heavy Industries successfully concluded wage talks, HD Hyundai Heavy Industries and Hanwha Ocean are grappling with labor-management disagreements. HD Hyundai Heavy Industries had to restart negotiations after a tentative agreement was rejected by the Korean Metal Workers’ Union HD Hyundai Heavy Industries Branch in a union membership vote.

Hanwha Ocean faces a unique challenge, as it must negotiate with regular workers' unions, a subcontractor union, and the union of a partner company that manages cafeteria and commuter bus services. Hanwha Ocean was compelled to include the subcontractor union's members in collective bargaining talks due to a court ruling. The shipbuilding industry reports that negotiations at HD Hyundai Heavy Industries are underway, but the schedule remains undecided.

The tentative agreement at HD Hyundai Heavy Industries included a flat monthly base pay raise, a lump sum payment, and a performance bonus. However, the union was not satisfied as it did not meet their demand for at least 30% of operating profit as a performance bonus. Hanwha Ocean is set to commence talks with the subcontractor and partner company unions, following a court's decision to include the Welliv Chapter in the collective bargaining process.

This decision came after the Central Labor Relations Commission ruled that Hanwha Ocean must recognize the Welliv Chapter as a party to the bargaining.