Samsung Heavy Industries first among Big 3 shipbuilders to reach wage deal

Samsung Heavy Industries became the first of South Korea's three major shipbuilders to wrap up wage negotiations, reaching a deal Wednesday.

The company said a tentative agreement reached between management and the union passed a membership vote with 58.78 percent in favor.

Under the agreement, base pay will increase by 131,786 won ($97), or 5.2 percent, including regular pay increments. Incentive bonuses will total 7 million won, comprising 2 million won for the wage settlement, 3 million won for labor-management harmony and 2 million won for future competitiveness enhancement.

On performance pay, the funding basis for the excess profit incentive, known as OPI, will shift from "20 percent of economic value added" to "10 percent of operating profit."

"We concluded the wage negotiations on the basis of mutual trust and respect," a Samsung Heavy Industries official said. "All employees will work together to strengthen competitiveness and improve earnings, and we will make greater efforts to build a cooperative labor-management culture."

HD Hyundai Heavy Industries and Hanwha Ocean, meanwhile, remain deadlocked in talks over wages and performance pay, with labor-management disputes at both companies showing signs of prolonged stalemate.