In the midst of a significant boom in the shipbuilding industry, labor-management tensions at domestic shipyards in Korea are escalating. Unionized workers are advocating for higher salaries and improved welfare benefits, further straining the already tumultuous relations with company management. Industry officials highlighted the growing discord on Monday, pointing to several confrontations at key shipyards.
Escalating Tensions at Hanwha Ocean
Last week, the labor-management conflict took a violent turn at Hanwha Ocean’s shipyard on Geoje Island, South Gyeongsang Province. On Thursday, unionized workers attempted to stop a car they believed was carrying Hanwha Group Vice Chairman Kim Dong-kwan, leading to a physical clash with managers. The situation quickly deteriorated, resulting in multiple injuries.
The Hanwha Ocean union reported that numerous union leaders were injured, with two requiring hospitalization. They accused the company’s management of adopting “gangster-style” tactics that have severely damaged labor-management relations.
Workers are particularly disgruntled over broken promises regarding restricted stock units (RSUs). RSUs are a form of stock-based employee compensation, which Hanwha Ocean had pledged to provide at a value equivalent to 300 percent of workers’ wages. However, the company failed to fulfill this promise after not turning a profit for 2023. The union claims that Kim Dong-kwan ignored their requests for talks concerning RSUs, exacerbating the already tense atmosphere.
In contrast, a spokesperson for Hanwha Ocean stated that the car in question was not carrying Kim and that many managers were also injured during the brawl. The spokesperson added that an executive had assured workers that their demands would be conveyed to the vice chairman.
Challenges at HD Hyundai Heavy Industries
The labor unrest is not confined to Hanwha Ocean alone. HD Hyundai Heavy Industries (HHI) is facing its own set of challenges as it struggles to reach an agreement with its union during this year’s collective bargaining sessions.
One of the union’s key demands is the extension of the retirement age from 60 to 65. Additionally, workers are pushing for the option to decline promotions to positions that are ineligible for union membership. These demands highlight the broader issues of job security and workplace rights that are at the heart of the labor movement.
Disputes have also arisen over the use of facial recognition machines intended to monitor the attendance of subcontracted workers. This issue underscores the ongoing concerns about privacy and surveillance in the workplace.
HD HHI CEO Lee Sang-kyun acknowledged the significance of these negotiations, stating, “Expectations are great for the shipbuilding industry boom, but the result depends on how well we do this year.” His comments underscore the critical nature of the current labor talks for the future of the company and the broader industry.
As the shipbuilding industry continues to flourish, the heightened labor-management conflicts at Korean shipyards represent a significant challenge. The demands for higher wages, better welfare benefits, and improved working conditions are at the forefront of the labor movement, and how these issues are resolved will have far-reaching implications for the industry. Amid the ongoing boom, it is clear that the future of shipbuilding in Korea hinges not just on market conditions, but also on the ability of companies and unions to find common ground.
