As this year’s wage negotiations reached a deadlock, the Korean Metal Workers’ Union recently announced an expansion of strike actions targeting the shipbuilding industry, specifically targeting HD Hyundai and its affiliated shipyards. The union stated that HD Hyundai management had promised to swiftly conclude negotiations and usher in a new era of “future-oriented labor-management culture.” However, after multiple rounds of talks, no substantial progress has been made, and time is running out.
The strike officially began this week. On July 16, HD Hyundai Heavy Industries initiated a four-hour work stoppage, which was extended to seven hours the following day. By July 18, the third day of the strike, the union expanded the action to HD Hyundai Samho Heavy Industries and Hanwha Ocean, with all three shipyards now facing large-scale strikes lasting over seven hours.
Union leaders further indicated that the strike would soon extend to the Seongnam R&D center. Meanwhile, employees at K Shipbuilding have also voted to express support for the strike action.
Notably, to amplify their demands, a union branch official has been staging a hunger strike in front of HD Hyundai’s R&D center for ten days, surviving only on water and salt, intensifying tensions.
The key demands from HD Hyundai Heavy Industries’ union include: a monthly base wage increase of 141,300 KRW, higher seniority-based pay, extending the retirement age to a maximum of 65, and improved working conditions for subcontract workers. Management’s counteroffer consists of a 127,000 KRW monthly base wage hike, a one-time bonus of 5 million KRW, and performance-linked incentives.
Hanwha Ocean’s negotiations have progressed almost in parallel with HD Hyundai Heavy Industries, also escalating to a full strike this month after talks began in May. The union is pushing for higher wages, extended retirement age, and better welfare benefits. During the 14th round of talks on the 15th, Hanwha Ocean proposed a 120,000 KRW base wage increase, higher spousal and child allowances, a one-time 4.3 million KRW bonus, and an additional special leave day.
The union maintains that the current boom in the shipbuilding industry justifies wage increases and improved working conditions. However, shipbuilders argue that this year’s order volumes have declined compared to last year, and they face fierce competition from China. Resources must be allocated to R&D in cutting-edge technologies like green propulsion and energy-efficient engines, making it difficult to meet all labor demands at this stage.
The union has announced plans for another round of strikes next week. On July 22, 23, and 26, day-shift workers will stage seven-hour stoppages from 9 AM to 5 PM. Additionally, the union is urging companies to finalize contract terms promptly to ensure employees have clear arrangements before the annual summer vacation period.
