HD Hyundai Heavy Industries, Hanwha Ocean unions escalate standoff with joint press conference

Labor-management tensions at South Korea's two largest shipbuilders show signs of deepening, as unions at both companies have launched high-altitude sit-in protests and are now preparing to present a united front with a joint press conference.

The Korean Metal Workers' Union branches at HD Hyundai Heavy Industries and Hanwha Ocean plan to hold a joint press conference Friday at 1 p.m. at the union's central headquarters in Jung-gu, Seoul, according to industry sources. A union official said the event would explain why the two unions began their high-altitude protests and why labor disputes have erupted despite the industry's current boom. The Hanwha Ocean branch chief climbed a crane on Oct. 8, and the HD Hyundai Heavy Industries branch chief followed suit Sunday, with both continuing their protests. The two unions' move toward coordinated action has raised concerns that the standoff could drag on.

At HD Hyundai Heavy Industries, management and the union have been unable to narrow their differences since members voted down a tentative wage agreement. Negotiations for this year's wage and collective bargaining agreement began with a first meeting on June 2. On Sept. 30, the two sides reached a tentative deal that included a base pay increase of 120,000 won ($91) — incorporating a seniority increment of 50,000 won — along with a one-time payment of 11 million won and a bonus payout of 200 percent. However, 52.14 percent of participating members voted against the deal on Oct. 2, sinking the agreement.

The union subsequently expanded its strike action. The HD Hyundai Heavy Industries branch launched a seven-hour partial strike Monday at the company's Ulsan headquarters and other sites, and plans to continue striking seven hours a day, excluding lunch breaks, through Friday. It is the first time all union members have been called out on strike since the tentative deal collapsed.

The two sides have now held 25 rounds of main negotiations, with another session scheduled for Thursday. Management has stressed the need for a swift resolution through talks. "The company has engaged in negotiations in good faith to reach a smooth conclusion," an HD Hyundai Heavy Industries official said. "We will do our utmost to resolve the situation as quickly as possible and restore normal bargaining."

Hanwha Ocean is similarly stuck. The company and its union have held 29 rounds of negotiations over the past four months and exchanged three rounds of proposals, but remain far apart on key issues. The union is demanding a base pay increase of 149,600 won, a bonus payout of 900 percent, an extension of the retirement age and improvements to the performance-based pay system. The company has put forward a third proposal offering a base pay increase of 138,689 won, a one-time payment of 7.5 million won and welfare points worth 1 million won per year.

The rehiring of retirees and reforms to the performance bonus system are also sticking points. The company has proposed offering one-year contract positions to workers born in 1966 after they reach retirement age, and establishing a task force to review the performance pay system. But the two sides remain at odds over the scope of those reforms and the length of any rehiring period.

Hanwha Ocean has called on the union to end its workplace occupation and put forward concrete proposals. "Rather than repeatedly making abstract or excessive demands to 'present a convincing company plan,' we ask the union to end the occupation and bring specific, workable alternatives to the negotiating table," a company official said. "The company also intends to engage in dialogue with a responsible attitude until the end, in order to reach a swift and amicable settlement and restore normal operations."

Subcontractor negotiations at Hanwha Ocean are also ongoing. The Korean Metal Workers' Union branches representing shipbuilding subcontractors in Geoje, Tongyeong and Goseong, along with the Wellive branch, held a second round of collective bargaining with management on Oct. 15, submitting a set of demands covering 36 clauses. Key demands include the succession of employment and working conditions and equal performance bonuses. Management agreed to review the proposals and respond at the next session; a third round of talks is scheduled for Thursday.

Industry observers warn that a prolonged dispute could strain production schedules and workforce management at both shipyards. Continued strikes and workplace occupations risk disrupting production timelines and labor deployment, while an extended standoff could also erode trust between management and workers, adding further pressure on both sides.