On September 2, the Korea Federation of Korean Metal Workers’ Trade Unions (KOSHU) announced two strikes on September 4th and 9th. This follows a partial strike on Aug. 28 that lasted three to five hours. The union includes eight shipbuilding unions, HD Hyundai Heavy Industries, HD Hyundai Samho, HD Hyundai Mipo, Hanwha Ocean, Samsung Heavy Industries, HSG Sungdong Shipbuilding, K Shipbuilding, and HJ Heavy Industries.
At 2:30 p.m. on September 4, KOSHU held a general strike resolution meeting in front of the headquarter of HD Hyundai Heavy Industries in Ulsan as planned, with more than 800 participants. On the same day, HD Hyundai Heavy Industries Union and Hanwha Ocean Union held a 4-hour-long partial strike respectively; HD Hyundai Samho Union held a 7-hour-long strike; and the rest of the shipyard unions sent their senior staff to participate in the strike.
In addition, HD Hyundai Heavy Industries has also announced that it will hold another four-hour partial strike on September 10th and 11th.
According to the plan, KOSHU will hold a protest at 2:30 p.m. on Sept. 9 at the intersection of Geoje Okpo, Gyeongsangnam-do.
KOSHU related personnel said, “If the negotiations cannot move forward effectively, the union will continue to discuss the strike schedule after the Mid-Autumn Festival holiday.” The HD Hyundai Samho union also hopes to reach a settlement before the Mid-Autumn Festival, but no progress has been made yet.
One day after the joint strike, on September 5, HD Hyundai Heavy Industries submitted to its unions the first wage and collective agreement proposal since the two sides began negotiations on June 4th. The management proposed: a 102,000 won increase in the basic salary (including a raise, about $76.1), the granting of 4 million won (about $2,984.4) in incentive bonuses and performance bonuses, an increase in the age for comprehensive medical checkups, as well as a proposal to invest 2 billion won (about $1,492,000) in the operation of recreational facilities, and the operation of a special labor-management agreement meeting for the improvement of the personnel system, among other things.
However, the proposal was immediately rejected by the labor union of HD Hyundai Heavy Industries. The union argued that HD Hyundai Industries’ proposed basic wage increase was lower than that of 2023, and that the incentive bonus and performance bonus offered by the employer were too low, at a time when the performance of the shipbuilding company was gradually improving and the shipbuilding industry was booming.
In the 2023 negotiations, HD Hyundai Heavy Industries labor and management finally agreed on a basic wage increase of 127,000 won (about $94.8). In 2024, the union demanded a basic wage increase of 159,800 won (about $119.2) and an extension of the retirement age to 65 from the current 60 years old.
After rejecting HD Hyundai Heavy Industries’ first proposal of this year, the HD Hyundai Heavy Industries union has called a three-hour partial strike at 2 p.m. on Sept. 6, which is the third time the union has gone on strike following the Aug. 28 strike. The HD Hyundai Heavy Industries union said, “The proposal given by the management does not respect the union members and shows no signs of being well thought out.The union would like to see proposals that truly take into consideration.”
In addition to HD Hyundai Heavy Industries, Hanwha Ocean’s labor and management continue to have serious disagreements over RSUs (Restricted Stock Units.) In May 2023, labor and management agreed to pay 300% of RSUs (150% in stock and 150% in stock price-linked cash) based on 2023 business performance.
The union argues that Hanwha Ocean should pay the promised RSUs; Hanwha Ocean, on the other hand, argues that the company is having trouble honoring its promise to pay 300% RSUs because it has not met its expected business goals.
As for Samsung Heavy Industries, the company has denied its union’s proposals for a 3.8% increase in basic wages, a 1 million won (about $746.1) reward for resolving labor disputes, and a 1 million won (about $746.1) reward for realizing profits. The Samsung Heavy Industries union acquired the right to strike on Aug. 22, with 97.14 percent of union members supporting the strike, and has already participated in two strikes held on Aug. 28 and Sept. 4, respectively.
It is worth noting that the eight major shipbuilding unions have slightly different demands for this year’s wages and collective bargaining agreements, but in general, all of them have put forward demands for increases in basic wages and performance bonuses, increases in benefits, extension of the retirement age, abolition of the wage peaking system, and shorter working hours.
Based on the reality, it is expected to be difficult for the union’s demand for shorter working hours to be recognized by the employers. According to recent data from the Korean shipbuilding industry, the capacity utilization rates of shipyards of HD Hyundai Heavy Industries, HD Hyundai Samho, HD Hyundai Mipo, Samsung Heavy Industries, and Hanwha Ocean have all increased in the first half of this year, reaching 93.3%, 118.2%, 101.4%, 112%, and 100.7%, respectively.
Currently, all major Korean shipbuilders have secured construction for the next three to four years and have indicated that they will continue to maintain a high shipyard capacity utilization rate in the second half of this year. A utilization rate of more than 100 per cent means that workers are overloaded with workloads and overtime has increased. Therefore, it is unlikely that working hours will be shortened.
