A 'Fall Labor Struggle' That Seems to End but Doesn't: HD Hyundai Heavy Industries Reopens Talks, Hanwha Ocean Expands Bargaining

[Financial News] The shipbuilding industry's 'fall labor struggle' seems to be dragging on without ending. Earlier, the situation appeared to be winding down after HD Hyundai Heavy Industries reached a tentative wage and collective bargaining agreement and talks resumed at Hanwha Ocean. Then, the Hyundai Heavy Industries Branch of the Korean Metal Workers' Union (KMWU) rejected the tentative agreement, and following a court ruling, the Welive Branch was added as a collective bargaining counterpart for Hanwha Ocean.
The fall labor struggle entered a new phase, according to the shipbuilding industry on the 5th. First, the KMWU Hyundai Heavy Industries Branch rejected a tentative wage-and-collective-bargaining agreement on the 2nd.
The tentative agreement would have provided KRW 40.56 million to each union member. It represented a record-level pay increase of KRW 10 million more than the previous agreement and was reached dramatically on the 30th, shortly before President Lee Jae-myung attended the launch ceremony for the latest Aegis destroyer, ROKS Daeho Kim Jongseo. Despite this, union members rejected it in a vote.
Last year, the union also rejected a tentative agreement once and only reached a final deal after two months of additional negotiations and a weeklong general strike. This year, concerns are growing that further talks could prove difficult, given forecasts that operating profit will reach twice last year's level and the union's demand to share 30% of operating profit on that basis. The possibility of a general strike, which the union had warned it would launch after the Chuseok holiday, has also been raised, along with a joint strike with the KMWU Hanwha Ocean Branch.
However, some industry observers expect a second tentative agreement to be reached amicably, noting that the union's level of protest is not as high as last year's. A general strike has not yet taken place, and only intermittent partial strikes have been held. In addition, opposition to the tentative agreement accounted for just 52% of the vote. Last year, opposition to the first tentative agreement exceeded 60%.
Hanwha Ocean is stepping up the pace, having agreed to continue negotiations every day after the Chuseok holiday. However, it has yet to produce even a first tentative agreement. Meanwhile, the KMWU Geoje-Tongyeong-Goseong Shipbuilding Subcontractors Branch launched a high-altitude protest by occupying a crane near Hanwha Ocean's west gate and a factory roof. The protest was prompted by demands to include the Welive Branch, which comprises workers at subcontractors responsible for workplace catering and facility management, as a party to collective bargaining.
The court ultimately sided with the union. Administrative Division 13 of the Seoul Administrative Court, presided over by Judge Jin Hyun-seop, dismissed Hanwha Ocean's application to suspend the execution of the National Labor Relations Commission's retrial decision. The commission's ruling requires Hanwha Ocean, as the de facto employer, to engage in joint bargaining with the KMWU Geoje-Tongyeong-Goseong Shipbuilding Subcontractors Branch and the Welive Branch.
[email protected] Kim Yun-ho Reporter