Following Hanwha Ocean, HD Hyundai Heavy Industries enters a “high-altitude sit-in” phase ... Could this lead to a winter labor struggle?

[Financial News] Concerns are growing that, following Hanwha Ocean, the HD Hyundai Heavy Industries labor union’s move to stage a high-altitude sit-in could extend the autumn labor struggle into winter.
According to industry sources on the 19th, Kim Dong-ha, head of the Hyundai Heavy Industries branch of the Korean Metal Workers’ Union, climbed a crane 25 meters high at Large Assembly Plant 1 at the company’s Ulsan headquarters at around 5 p.m. on the 18th and began a high-altitude sit-in. The Hyundai Heavy Industries branch has now joined the Hanwha Ocean branch of the Metal Workers’ Union and the subcontractors’ union, whose members had climbed cranes at the Geoje shipyard.
The Hyundai Heavy Industries branch of the Metal Workers’ Union also decided to stage a seven-hour partial strike each day, involving all members, from that day through the 23rd. In a statement, it said, “We must now make clear who is entitled to the fruits of the boom. We will win a fair distribution of performance gains.” From the outset of labor-management negotiations, the union has been demanding a 30% share of operating profits and a substantial increase in base pay.
Adjusting working conditions following the integration of HD Hyundai Heavy Industries and HD Hyundai Mipo is another variable. Members who previously belonged to HD Hyundai Mipo are concerned that their existing wages and benefits could be rolled back. That is why Kim Tae-am, chair of the Mipo committee, has been continuing his hunger strike since the 8th; it is now in its 12th day.
When Kim Tae-am began his hunger strike, branch head Kim Dong-ha expressed regret, saying it had been launched without prior consultation. But after the first tentative agreement was rejected on the 30th of last month and discontent within the union grew, he changed his position. Kim Dong-ha has now taken part in the high-altitude sit-in himself, while a union statement said, “Through integrated collective bargaining, we will overcome our differences and build a united union.”
The rejected tentative agreement included a 120,000-won increase in base pay (including a 50,000-won seniority-step increase), a lump-sum payment of 11 million won, including an incentive payment, and a payment of 200%, among other items—worth more than 40 million won per union member. Even so, it was rejected in a vote, with 52.14% voting against. The main sticking point is reportedly the size of the base-pay increase. The union’s baseline position is to seek a 149,600-won increase. Hanwha Ocean’s proposed base-pay increase reportedly amounts to 138,689 won, and the union is said to be insisting that the company offer at least that much.
The high-altitude sit-in at Hanwha Ocean has entered its 19th day for the subcontractors’ union and its 11th day for branch head Kim Yu-cheol. Hanwha Ocean is taking a hard line, saying that negotiations and its response to the illegal occupation are separate matters. Perhaps as a result, the 28th round of negotiations on the 16th also ended with little progress.
The Hanwha Ocean branch has reportedly demanded an increase in base pay, higher performance bonuses, and an extension of the reemployment period for retirees from one year to two. Its demand for a base-pay increase is 149,600 won, the same as that of the Hyundai Heavy Industries branch. Negotiations with the subcontractors’ union and the Welliv branch, a subcontracted union representing catering and facilities-management workers, are still at an early stage, with the third round scheduled for the 22nd.
The boom in the shipbuilding industry is behind the prolonged autumn labor struggle. One example is that HD Hyundai Heavy Industries’ operating profit forecast for this year is twice last year’s. With Samsung Heavy Industries included, the three major shipbuilders’ order backlog is also in the 200 trillion won range, reflecting the sector’s continuing growth.
[email protected] Kim Yun-ho Reporter