Strikes Grow as Wage Talks Drag on for Korean Shipbuilders
Strikes Grow as Wage Takes Drag on for Korean Shipbuilders
The Korean Metal Workers’ Union reports it is expanding its strike actions against the shipbuilding sector during this year’s round of wage talks. The union says that HD Hyundai management had promised to quickly conclude the negotiations and advance the company to the next level with a future-oriented labor-management culture, but after 12 rounds, the time left is now running out.
Partial strikes began this week at HD Hyundai Heavy Industries with a four-hour stoppage on July 16 and seven hours on July 17. Today, on the third consecutive day, the union was planning a full stoppage, and the strike was also spreading to the HD Hyundai Samho yard and Hanwha Ocean, where they planned a four-hour stoppage.
Union members have now authorized strikes at three of Hyundai’s yards, HD Hyundai Heavy Industries, Mipo, and Samho, and the leadership reports it will also expand the strike to the R&D Center in Seongnam. Members at Hanwha Ocean and K Shipbuilding have also voted to support strikes.
Adding to the drama, one of the union branch managers is staging a hunger strike in front of the R&D Center. Baek Ho-seon has been on a hunger strike for 10 days, taking only water and salt.
The union says HD Hyundai presented its proposal on July 9, but it was rejected with the union saying it was far lower than expected. The company proposed a smaller increase in base wages and what it says is the largest ever increase in the incentive and performance pay packages. The union is demanding an increase in basic pay instead of variable pay, as well as an extension of the retirement age and a change in how the performance pay is calculated. Media reports are that they are also demanding more hiring of employees versus contractors.
According to the union leaders, the shipyards are citing the increased competition from the Chinese shipbuilders. They said the shipyards are emphasizing a "sense of crisis due to the situation in which China, which has closely followed Korea in the shipbuilding industry orders and technology, is sweeping away sales and the consolidation of Chinese shipyards equipped with technological development and the latest facilities."
South Korea’s shipbuilders have built large backlogs in the past few years, but also note that China has grown its market share. The Koreans have been focusing on high-value ships and new technologies such as automation and navigation, as well as new sectors such as ammonia-fueled vessels.
The Metal Workers Union has scheduled additional strikes for next week. They are calling for seven-hour stoppages for the day shifts between 9 and 5 on July 22, 23, and 26. They are also calling for a resolution of the contract for the annual summer leave begins.