Hanwha Ocean wraps up wage talks; performance bonus criteria to be set by year-end

[Financial News] Hanwha Ocean and its labor union have concluded this year's wage and collective agreement negotiations, which continued for about five months. They agreed to establish criteria by year-end for performance bonus payments—the key issue in this year's negotiations—through a joint task force (TF).
According to the Hanwha Ocean branch of the National Metal Workers' Union, the tentative wage agreement was approved in a vote held on the 29th, with 2,212 of the 4,422 voters (50.02%) voting in favor. Turnout was 93.95% of the union's 4,707 members. There were 2,183 votes against (49.37%) and 27 invalid ballots (0.61%), leaving a margin of just 29 votes.
The company and union began negotiations with an initial meeting on June 4 and reached a tentative agreement at their 30th round of talks on the 27th. The agreement includes a 140,000-won monthly increase in base pay and a one-time payment of 8.5 million won. The payment consists of a 4.5 million-won settlement bonus, a 1 million-won mutual-growth incentive, and a 3 million-won AI Transformation (AX) innovation incentive.
Welfare benefits will also be expanded. The company will provide annual welfare points worth 1 million won and raise monthly support for children about to start school from 100,000 won to 300,000 won. The agreement also includes increases to some family-event benefits and the hiring of new employees. Following ratification, the 30th will be designated a special day off.
Further discussions will continue on improving the performance bonus system. The company and union plan to form a TF with the participation of their working-level negotiating teams and operate it through the end of this year. The TF will establish payment criteria for financial and strategic performance bonuses based on indicators such as operating profit, revenue, operating profit margin, and safety. The aim is to make the criteria for calculating performance bonuses more specific by using objective and predictable indicators.
The agreement also sets out a plan to rehire union members retiring at the mandatory retirement age. Those born in 1966 will be rehired for one year in production contract positions, with a possible one-year extension to be considered under the relevant review criteria. It also provides for a one-year extension, subject to a separate review, of the reemployment period for those born in 1965 who are currently working in production contract positions.
Following approval of the agreement, branch chair Kim Yu-cheol is also expected, that day, to end the high-altitude sit-in that has continued since the 8th on a crane at Hanwha Ocean's Geoje Shipyard. The company and union are coordinating the date for the signing ceremony.
With Hanwha Ocean also concluding its negotiations, this year's wage talks at South Korea's three major shipbuilders have wrapped up. Samsung Heavy Industries concluded its wage negotiations in September, and HD Hyundai Heavy Industries' second tentative agreement was also approved in a union members' vote on the 27th, with 55.06% voting in favor.
[email protected] Jung Won-il Reporter