7-hour daily partial strikes scheduled for October 19–23; union branch leader stages high-altitude sit-in
Record 40.56 million won compensation package rejected amid disputes over performance sharing and merger integration
HD Hyundai Heavy Industries (329180) has announced a five-day partial strike involving all union members amid a thriving shipbuilding cycle. Tensions have escalated as the labor union branch leader launched a high-altitude sit-in protest, following the failure of management and labor to reach an agreement despite formulating a historically large compensation package. Unresolved wage and welfare adjustments stemming from the integration with HD Hyundai Mipo are also expected to weigh on production schedules at shipyards.
Record Compensation Package Rejected Over Base Pay and Performance Distribution
The Hyundai Heavy Industries branch of the Korean Metal Workers' Union plans to stage a 7-hour daily partial strike for all members from October 19 to 23. Initially, the union had planned a 4-hour strike focused mainly on union executives on October 19–20, but expanded it to a 7-hour strike for the entire membership. The strikes scheduled for October 21–23 will proceed as planned.
Kim Dong-ha, head of the union branch, climbed a roughly 25-meter crane at the No. 1 large assembly plant of the Ulsan headquarters on the afternoon of October 18, launching an indefinite high-altitude sit-in. He is demanding expanded performance distribution tied to the shipbuilding boom, integrated collective bargaining, and improved working conditions.
Following negotiations that began in June, labor and management reached their first tentative agreement on September 30. The package included a 120,000 won increase in base pay, an 11 million won lump-sum payment plus 200% of base salary, separate performance bonuses, and expanded rewards for long-term employees.
Management estimated the average compensation effect per union member at 40.56 million won, combining the base pay hike, lump-sum payments, and performance bonuses. While this was a record high—10.61 million won more than last year's negotiations—the tentative agreement was voted down in a ratification ballot on October 2, with 3,932 (52.14%) of the 7,541 participating voters rejecting it.
At the core of the conflict is the method of allocating base pay and performance bonuses. The 120,000 won base pay increase in the tentative agreement includes a 50,000 won seniority increment, making the actual net increase lower than last year's 135,000 won hike. It also falls short of Samsung Heavy Industries' base pay increase of 131,786 won, which concluded its wage negotiations earlier.
The union demanded that at least 30% of the company's operating profit be utilized as a resource for performance bonuses, a criterion that was omitted from the tentative agreement. Demands continue to mount for higher fixed pay increases and performance-linked distributions tied to actual earnings, rather than one-off compensations such as lump-sum grants.
Integration Friction with HD Hyundai Mipo Compounds Ship Construction Schedule Risks
Friction has also persisted during the process of aligning disparate wage, welfare systems, and collective agreements following the merger with HD Hyundai Mipo.
The Mipo Committee, representing former HD Hyundai Mipo union members, has pushed back against potential rollbacks in existing working conditions. Kim Tae-am, head of the Mipo Committee, has been on a hunger strike since October 8, and the actual participation and format of strikes by Mipo Committee members will be determined separately.
The upcoming strikes are scheduled to last 7 hours daily from 9 a.m. to 5 p.m., excluding lunch breaks. With the total strike duration reaching 35 hours over the five days, the action is expected to reduce active operating hours on the production floor if carried out as planned.
Shipbuilding involves interconnected processes such as hull assembly, outfitting, and sea trials, meaning prolonged work stoppages could disrupt downstream processes. With the strikes expanding just as high-margin vessel deliveries translate into revenue and profit, pressures are mounting to tightly manage production schedules.
The union argues that the company's operating profit is projected to surpass 4 trillion won this year and is demanding performance distribution commensurate with this earnings improvement. Meanwhile, management maintains that it has already offered a substantial compensation package, leaving little room for additional hikes.
Following the rejection of the tentative agreement, labor and management held re-negotiations on October 13 and 15, but failed to reach an additional accord. As the union intensifies pressure through the high-altitude sit-in and full-membership partial strikes, future negotiations are expected to focus heavily on base pay increases, performance bonus criteria, and post-merger adjustments to working conditions.
