Additional Strike Announced Amidst Difficult Labor Negotiations
Demands for Base Pay Increase and Welfare Expansion
"Boom for the First Time in 10 Years... Treatment Must Improve Accordingly"
"Hope to Focus on Negotiations and Seek Agreement"
The Korea Metal Workers' Union Shipbuilding Industry Union Solidarity (Chosun Noyeon), which has conducted two partial strikes this year, is escalating its strike actions by declaring a joint struggle. There are forecasts that reaching an agreement on wages and collective bargaining (wage and collective agreement) before Chuseok will not be easy. Given the surge in orders and the backlog of work, the possibility of setbacks in performance recovery cannot be ruled out.
The HD Hyundai Heavy Industries union went on a 4-hour strike on the 4th due to difficulties in this year's wage negotiations. The photo shows union members participating in the Shipbuilding Industry Union Solidarity (Joseon Noyeon) rally held in front of the main gate of the Ulsan headquarters that afternoon. Photo by HD Hyundai Heavy Industries union
According to the industry on the 5th, Chosun Noyeon, composed of unions from eight shipbuilding companies including the three major shipbuilders, issued a resolution the day before stating, "There has been no progress in wage and collective bargaining at any Chosun Noyeon workplace," and announced, "We will proceed with a march to Seoul and Bundang."
On the same day, Chosun Noyeon conducted partial strikes lasting 3 to 5 hours by company and held a rally in front of the main gate of HD Hyundai Heavy Industries in Dong-gu, Ulsan, attended by about 1,000 people (estimated by the organizers). This was the second partial strike following the one on the 28th of last month.
The union demands vary slightly by company but commonly include increases in base pay and performance bonuses, extension of retirement age (abolition of the wage peak system), and expansion of welfare benefits. The union claims, "During the shipbuilding industry's downturn, we endured years of wage freezes and stood with the company to overcome the crisis," and argues, "Now that the domestic shipbuilding industry is experiencing a boom for the first time in 10 years, corresponding improvements in treatment must be made."
When the domestic shipbuilding industry fell into a deficit due to the order cliff and China's low-price offensive in the 2010s, the unions of the three major shipbuilders participated in austerity management, including wage freezes for up to four years and reductions in performance bonuses and allowances.
Members of the union participating in the resolution rally of the Shipbuilding Industry Union Solidarity (Joseon Noyeon) held in front of the main gate of HD Hyundai Heavy Industries headquarters in Ulsan on the afternoon of the 4th. [Photo by HD Hyundai Heavy Industries Union]
Chosun Noyeon has announced four additional strikes before Chuseok. Currently, only executives participate by company to minimize production disruptions, but if the management does not present meaningful proposals, the union plans to escalate the struggle in the future.
An HD Hyundai Heavy Industries official expressed regret, saying, "It is unfortunate to strike at a very important time that will be a turning point for overcoming years of recession and achieving full-scale recovery of business performance," and added, "We hope that additional strikes will be restrained and that negotiations will focus on seeking a consensus." Hanwha Ocean also stated, "We will continue dialogue through negotiations with the labor union."
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