'Hanwha Ocean Union Reaches Tentative Wage Deal, Ends High-Altitude Protest ... Management Considers Dropping Damages Lawsuit'

After prolonged negotiations over wage increases and other issues, Hanwha Ocean management and labor have reached a tentative agreement.

According to the Geoje-Tongyeong-Goseong Shipbuilding Subcontractor Branch of the Korean Metal Workers' Union Gyeongnam Chapter, which was attended by Hanwha Ocean and Hanwha Ocean subcontracted workers on June 18, a tentative agreement has been reached regarding the 2024 wage and collective bargaining negotiations that have been under discussion.

On June 17 at around 9 p.m., both sides produced a so-called "agreement in principle," which serves as a tentative agreement for the 2024 wage and collective bargaining negotiations, including an agreement on a 50% increase in bonuses, which had been a key sticking point.

Hanwha Ocean Geoje Plant. Courtesy of Hanwha Ocean

Following the agreement, the Shipbuilding Subcontractor Branch plans to end the high-altitude protest that Kim Hyungsoo, the branch head, has been conducting for 95 days atop a 30-meter tower in front of Hanwha Group's headquarters in Seoul, calling for the guarantee of labor rights and collective bargaining.

Hanwha Ocean is currently considering withdrawing the lawsuit for damages of approximately 47 billion won that was filed against the Shipbuilding Subcontractor Branch, which staged a 51-day occupation and strike at the shipyard dock in June 2022, during the former Daewoo Shipbuilding & Marine Engineering era.

A Hanwha Ocean representative stated, "In order to realize the principle of coexistence and cooperation, where both labor and management prosper together, we are preparing to withdraw the 47 billion won damages lawsuit in a broad-minded manner."

The representative added, "Under current law, leaving management losses from strikes unaddressed creates legal risks such as breach of fiduciary duty by management. However, we are persuading the board of directors, including outside directors, that withdrawing the lawsuit and taking steps toward labor-management harmony will strengthen the company's long-term business competitiveness."

The Shipbuilding Subcontractor Branch plans to hold a press conference at 2 p.m. on June 19 in front of the Hanwha Building in Seoul to announce the end of Kim's high-altitude protest.