Hanwha Ocean subcontractors' union secures strike rights, warns of walkout if talks refused

A regional labor commission has halted mediation on a labor dispute filed by the Korean Metal Workers' Union, which represents subcontract workers at Hanwha Ocean, clearing the way for a legal strike. The union said it is the first case in which a dispute over collective bargaining with a primary contractor has resulted in secured strike rights since the so-called Yellow Envelope Law — an amendment to Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act — took effect.

According to the Ministry of Employment and Labor and labor circles Wednesday, the South Gyeongsang Provincial Labor Relations Commission issued the mediation suspension ruling after about seven hours of proceedings. As a result, the Metal Workers' Union's Welliv branch and the Geoje-Tongyeong-Goseong Shipbuilding Subcontractors' branch are now legally entitled to engage in industrial action.

The Welliv branch, which represents workers handling catering, commuter bus and facility management services at Hanwha Ocean, held a strike vote June 18 and 19. Of the branch's 437 members, 406 participated, and 342 — or 84.2 percent — voted in favor, passing the strike motion. The Geoje-Tongyeong-Goseong Shipbuilding Subcontractors' branch is currently conducting its own strike vote, running from June 29 through July 3.

The unions had earlier called for collective bargaining with Hanwha Ocean, the primary contractor, on March 10, the day the Yellow Envelope Law took effect. Hanwha Ocean excluded the Welliv branch, however, when posting notices of bargaining demands and finalizing the list of unions eligible for negotiations. The Metal Workers' Union filed for a correction, and the South Gyeongsang commission ruled April 16 that the finalized notice must include the Welliv branch. Hanwha Ocean appealed, but the National Labor Relations Commission upheld the original ruling on June 15. In the process, the national commission also found that Hanwha Ocean qualifies as an employer of the Welliv workers.

"If Hanwha Ocean refuses collective bargaining, the Shipbuilding Subcontractors' branch and the Welliv branch will launch a joint strike," the union said.