South Korea’s five major shipyards have secured the legal right to strike, with unions considering a joint walkout starting next week depending on whether management presents a wage proposal.
According to Korean media reports, the Korean Shipbuilding Workers’ Union Alliance held a press conference on the morning of the 9th in front of the Korea Offshore & Shipbuilding Association (KOSHIPA) in Gangnam District, Seoul. The event aimed to urge KOSHIPA to engage in joint negotiations to address structural issues in the shipbuilding industry and demanded that management propose a plan meeting union demands.
The alliance stated, “If management fails to present an acceptable proposal by July 17, the first general strike—lasting over four hours across workplaces—will commence on the 18th.” Unions from HD Hyundai Heavy Industries, HD Hyundai Samho, HD Hyundai Mipo, Hanwha Ocean, and K Shipbuilding all participated in the press conference.
Prior to the event, strike votes were conducted among the alliance-affiliated unions at HD Hyundai Heavy Industries, HD Hyundai Samho, HD Hyundai Mipo, Hanwha Ocean, and K Shipbuilding. The overall participation rate was 76.5%, with a 94.7% approval rate, securing an overwhelming mandate for legal strike action. HD Hyundai Samho led with a 96.4% approval rate, followed by HD Hyundai Mipo (95.8%) and HD Hyundai Heavy Industries (95.6%).
At the press conference, a vice president of the Korean Metal Workers’ Union remarked, “Management has entered the shipbuilding boom without any countermeasures, relying solely on foreign labor as a solution. This is not a fundamental fix, which is why we demand collective bargaining for shipbuilding, offshore engineering, and related sectors.”
A representative from HD Hyundai Heavy Industries’ subcontractor division criticized, “The dual structure between primary contractors and subcontractors still requires adjustment. Subcontracted workers’ 7% wage increase wasn’t due to higher base pay but extended overtime privileges. Since March, their daily wages have been cut by ₩10,000, with shipbuilders seeing average monthly reductions of up to ₩1 million.”
The alliance further emphasized, “Despite severe labor shortages, management avoids hiring regular workers, relying instead on cheap foreign labor. Instead of using shortages as an excuse, they must expand stable regular hires and provide fair treatment. KOSHIPA must initiate industry-wide negotiations to resolve structural issues. As the representative body, it can no longer remain passive but must act to ensure sustainability and workers’ livelihoods.”
Beyond the joint strike, HD Hyundai Heavy Industries’ union is also planning a separate four-hour partial strike on July 11, involving all members. During 2024 negotiations, the union staged 24 partial strikes.
Regarding the strike, the union’s leader stated, “Management has only verbally promised an agreement before summer break without specifics. If they won’t decide, we will. Without a sincere proposal, we’re left with no choice but drastic action.”
Notably, on April 22, the union submitted its *2025 Wage Negotiation Demands*, including a ₩141,300 (≈¥747) base wage hike (excluding seniority raises), extended retirement age (scrapping peak wage systems), higher seniority bonuses, revised performance pay criteria, a ₩5 billion (≈¥26.45 million) special budget for recreational facilities, and improved conditions for non-regular workers.
Industry insiders noted, “Shipbuilders’ wage proposals are already delayed compared to other manufacturing sectors. Unions are leveraging strike rights to strengthen bargaining power.”
Clarksons data shows global new orders from January to June totaled 19.38 million compensated gross tons (CGT, 647 vessels), down 54% YoY (42.58 million CGT, 1,788 vessels). Korean shipbuilders secured 4.87 million CGT (113 vessels), a 25% market share, marking a 33% annual decline.
Amid concerns over a post-peak downturn (*Peak out*), some analysts suggest unions are prioritizing wage talks this year, fearing missed opportunities during the boom could weaken their position in a recession.
