Hanwha Ocean, HD Hyundai Heavy and Samsung Heavy unions escalate South Korean shipbuilding disputes

  • Hanwha Ocean, HD Hyundai Heavy and Samsung Heavy unions escalated labor actions over stalled wage talks.
  • Hanwha Ocean’s full-scale strike involved about 4,700 members in an eight-hour walkout.
  • Samsung Heavy’s council held protests after management failed to present a wage proposal in 16 negotiations.

Labor disputes are intensifying across South Korea’s shipbuilding industry as unions at Hanwha Ocean and HD Hyundai Heavy Industries stage strikes and Samsung Heavy Industries workers boycott negotiations. Hanwha Ocean’s union has conducted daily partial or full-scale strikes since Aug. 31, including an eight-hour walkout involving about 4,700 members that temporarily halted some cranes and transporters at the Geoje Shipyard. The union is seeking a monthly base-pay increase of 149,600 won, performance bonuses of 900% and other benefits, while management offered a 95,000-won increase, a one-time payment of 5.5 million won and additional benefits. HD Hyundai Heavy Industries’ union is conducting partial strikes after 19 rounds of talks failed to produce an agreement. Its demands include a 149,600-won monthly base-pay increase and 30% of operating profits, while management’s second offer included a 105,000-won increase, a 12,000-won seniority-based increase, bonuses and utility-cost coverage. Samsung Heavy Industries’ Workers’ Council has boycotted its 17th negotiation after management failed to present a wage proposal following 16 rounds of talks and has protested near the Samsung Electronics Seocho Office and the residence of Lee Jae-yong, chairman of Samsung Electronics. The disputes add labor uncertainty to an industry managing strong demand, heavy order backlogs and demanding delivery schedules.

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