HD Hyundai Heavy Industries Moves Up Full-Scale Strike by Four Days; Shipbuilding Unions Also Threaten Joint Strike

[Financial News] The Hyundai Heavy Industries Branch of the Korean Metal Workers’ Union carried out a four-hour strike involving all union members on the 11th. It raised the level of its action by moving the strike forward by four days from the originally announced date of the 15th. In addition, the Shipbuilding Industry Labor Union Alliance, which consists of eight shipbuilding sites, warned that it could launch a joint strike after completing the procedures for industrial action.
The Hyundai Heavy Industries union went on strike at 1 p.m. that day, with all members participating for four hours. It held a rally in front of the union office at Ulsan Shipyard and also toured the plant by motorcycle, honking horns in protest.
The partial strike involving all union members had originally been scheduled for the 15th. However, after management failed to reach an agreement despite presenting a third proposal the previous day, the union decided to bring forward the full-membership strike by four days. The previous day was also when HD Hyundai Heavy Industries announced a 1 trillion won investment in land-based power-generation engines and small modular reactors (SMRs) as future growth engines. The union announced that all members would stage four-hour strikes on the 14th and 15th, followed by seven-hour strikes from the 16th through the 18th.
Management’s third negotiation proposal included a monthly base-pay increase of 110,000 won, including a 47,000-won seniority increase, along with an incentive payment of 10 million won plus 200% and gift certificates worth 500,000 won. The union, however, is objecting to the size of the base-pay increase. Operating profit is expected to rise by as much as twofold from last year, but the proposed base-pay increase is smaller than last year’s, the union says. It is demanding a 149,600-won increase in base pay.
Another point of contention is the union’s first-time demand to ‘share at least 30% of operating profit.’ It continues to maintain this position even though the Ministry of Employment and Labor (MOEL) issued guidelines stating that an ‘n% performance bonus’ is not subject to mandatory negotiations. The Hyundai Heavy Industries union wants at least 30% of operating profit to be allocated to union members through base-pay increases, performance bonuses, incentive payments and allowances.
HD Hyundai Heavy Industries told Financial News that the impact of the strike remains limited for now. Unlike a conveyor system, in which processes proceed sequentially, the company’s operations are structured separately. Disruptions would occur only if the strike reached the point of blocking logistics within the plant. The company therefore said it would work toward reasonable negotiations.
The concern is that the union is preparing to raise the pressure further. It warned that it would apply stronger pressure if the parties failed to reach a tentative agreement next week and conclude a deal before the Chuseok holiday. This appears to take into account the possibility of a joint strike by the Shipbuilding Industry Labor Union Alliance.
The Shipbuilding Industry Labor Union Alliance said that mediation applications and strike approval votes had passed at six sites—Hyundai Heavy Industries, Hyundai Mipo Dockyard, Hanwha Ocean, Samsung Heavy Industries, HSG Sungdong Shipbuilding and K Shipbuilding. The alliance warned, "Five months have passed since negotiations began, but not a single site has reached an agreement, and Samsung Heavy Industries, Hyundai Samho Heavy Industries and K Shipbuilding have not submitted even one proposal." It added, "If acceptable proposals are not submitted, we will convene a representatives’ meeting before Chuseok to establish an all-out struggle plan, including a joint strike after Chuseok, and launch a full-scale campaign."

[email protected] Yoon-ho Kim Reporter