Hanwha Ocean Faces Multiple Labor Talks as Crane Sit-In Enters Ninth Day

A high-altitude sit-in protest by subcontracted workers at Hanwha Ocean's Geoje shipyard has entered its ninth day. The demonstration, initially demanding direct negotiations with the contractor, has shifted after a court ruled in favor of the subcontract union. Hanwha Ocean plans to hold collective bargaining sessions with both its regular workforce and the subcontract unions on Oct.

8. The subcontract negotiations became possible following a Seoul Administrative Court rejection of Hanwha Ocean's request for a stay of execution on Oct. 1. The National Labor Relations Commission had earlier ruled that Hanwha Ocean must engage in collective bargaining with the Welliv Branch, a union representing workers at a partner company.

Hanwha Ocean contested this ruling, arguing that Welliv is an independent service provider and should not be considered an employer. The court disagreed, finding that adhering to the collective bargaining notice requirement would not cause irreparable harm. Hanwha Ocean's management presented a proposal including a 123,689 won salary increase and a one-time payment of 6.5 million won, but the union rejected it, insisting on a 149,600 won increase and a bonus rate boost to 900%.

Tensions escalated when Hanwha Ocean Branch chairman Kim Yu-cheol joined the crane protest, advocating for an extended retirement age and improved performance-based compensation. Four of the six original sit-in protesters remain, arguing that Hanwha Ocean should share performance bonuses equally with both direct and subcontracted workers.

The shipbuilding industry's strong demand for orders, up 22% year-over-year, is now overshadowed by this labor dispute. Hanwha Ocean has pledged to comply with the court's decision on collective bargaining, but tensions are expected to persist as negotiations continue.