Hanwha Ocean has withdrawn its damages claim lawsuit of approximately 47 billion won against subcontractor workers.
On October 28, Hanwha Ocean announced, "We have decided, in the spirit of the greater good, to withdraw the damages claim lawsuit filed against the Shipbuilding Subcontractors Branch in 2022, and today we signed a mutual growth agreement to establish a new relationship of trust between labor and management."
On this day, Hanwha Ocean and the Metalworkers' Union Geoje Tongyeong Goseong Shipbuilding Subcontractors Branch held a joint press conference at the National Assembly and announced the agreement to withdraw the damages claim lawsuit.
Hanwha Ocean and the Metalworkers' Union Gyeongnam Geoje Tongyeong Goseong Shipbuilding Subcontractors Branch are holding a joint press conference at the National Assembly to announce the agreement to withdraw the damages lawsuit. Provided by Metalworkers' Union Gyeongnam Branch
The agreement states that Hanwha Ocean will unconditionally withdraw the damages claim lawsuit related to the subcontractors' branch strike, and that the subcontractors' branch expresses deep regret for the issues caused by the strike.
The agreement also includes Hanwha Ocean's commitment to guarantee the legitimate union activities of the subcontractor union at the Geoje shipyard, as well as joint efforts by Hanwha Ocean and the union to establish a sound labor-management relationship.
Previously, the Geoje Tongyeong Goseong Subcontractors Branch staged a strike for 51 days starting June 2, 2022, at the Okpo Shipyard, the former Daewoo Shipbuilding & Marine Engineering Geoje site, demanding the restoration of wages that had been cut by about 30% during the shipbuilding industry downturn in 2015.
During this process, workers occupied the dock, the shipbuilding area, and staged a sit-in inside a steel structure measuring 1 meter in width, length, and height.
On July 22 of that year, labor and management reached a dramatic agreement on a 4.5% wage increase, ending the strike. However, the occupation of the dock led to the unprecedented suspension of ship launching operations at Daewoo Shipbuilding & Marine Engineering for the first time in the company's history.
As a result, Daewoo Shipbuilding & Marine Engineering filed a damages claim lawsuit of approximately 47 billion won against the Shipbuilding Subcontractors Branch, seeking compensation for delay penalties, lost sales, and other losses.
Hanwha Ocean and the subcontractors' branch had experienced prolonged difficulties during the lawsuit proceedings and wage collective bargaining. However, with mediation from Gyeongnam Province and the National Assembly, as well as detailed negotiations between the parties, a tentative agreement was reached at the end of July this year, and the final agreement was concluded on this day.
Hanwha Ocean and representatives of the Metalworkers' Union Gyeongnam Geoje Tongyeong Goseong Shipbuilding Subcontractors Branch are posing for a photo holding the agreement to withdraw the damages claim lawsuit. Provided by Metalworkers' Union Gyeongnam Branch
Regarding the withdrawal of the damages claim, Hanwha Ocean stated, "Withdrawing the lawsuit is not merely ending a civil case, but a decision for the future of Hanwha Ocean and the Korean shipbuilding industry, marking a new beginning."
The company added, "Leaving past conflicts behind, we are now at an important starting point for sustainable, mutual growth based on respect and cooperation. Hanwha Ocean will do its utmost to overcome the past and ensure safe production and sustainable competitiveness through the joint efforts of both primary and subcontractor labor and management."
The Shipbuilding Subcontractors Branch commented, "At last, the branch is able to lay down the heavy burden of the 47 billion won damages claim that has weighed on us for over three years."
They continued, "Although the damages claim is withdrawn, capital will never give up using such lawsuits as an effective tool to suppress unions. We must continue the fight to amend the labor law so that damages claims related to strikes are completely banned."
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