South Korea’s major shipyards are facing renewed labor pressure as unions demand that outsourced workers receive performance bonuses proportional to those paid to regular employees. The Korean Metal Workers’ Union, together with Progressive Party lawmaker Yoon Jong-woo, has called for structural changes to bonus allocation practices across the domestic shipbuilding industry.
At a joint press conference, the union urged all shipyards to follow the recently announced policy of Hanwha Ocean, which aligns the bonus distribution ratio for outsourced workers with that of directly employed staff at its headquarters. The demands also included abolishing exclusionary or differential bonus schemes, recognizing main contractors as the effective employers responsible for outsourced workers’ wages and working conditions, and guaranteeing their participation in collective bargaining.
The union presented 2024 performance bonus data covering HD Hyundai Heavy Industries, HD Hyundai Mipo, and Hanwha Ocean to illustrate persistent disparities. At HD Hyundai Heavy Industries, regular employees received an average year-end bonus of 9.5 million won (approximately US$6,500). Outsourced workers received 3.4 million won (about US$2,300), equal to 35.8% of the regular employee average, while outsourced foreign workers received 2.05 million won, or 21.6%.
At Hanwha Ocean, average bonuses for regular employees stood at 4 million won (around US$2,700). Outsourced workers received 1.9 million won, equivalent to 47.5% of that level, and outsourced foreign workers received 1.33 million won, or 33.3%. The union emphasized that these figures compare regular employee averages with the highest bonus tier among outsourced workers, suggesting the actual gap may be wider.
Attention has also focused on 2025 bonuses. HD Hyundai Heavy Industries has already paid its regular employees an average performance bonus of 17.21 million won (approximately US$11,800). However, the method and scale of bonuses for outsourced workers have yet to be disclosed. The shipyard previously stated that outsourced workers would receive bonuses at the “highest level in the industry” and postponed payment from December 2025 to February 2026.
Yoon Jong-woo stated that Hanwha Ocean’s policy shift reflects basic fairness and should be adopted across the sector. He argued that HD Hyundai Samho and Samsung Heavy Industries should introduce similar standards, noting that no tangible changes have followed Hanwha Ocean’s announcement so far.
According to Yoon, outsourced workers account for as much as 63.9% of the workforce at South Korean shipyards—around 3.5 times the industry average—and carry out roughly 70% to 80% of direct production work. Despite this, outsourced workers typically earn far less in combined wages and bonuses than regular employees, even while working longer periods on site.
Conditions at HD Hyundai Samho were also highlighted. Union sources said foreign workers make up about 40% of the yard’s workforce but receive performance bonuses amounting to only around 10% of those paid to regular employees of the main contractor. Bonus allocation based on seniority remains common, a practice critics argue discourages retention rather than fostering long-term commitment. Reports that this year’s outsourced worker bonuses may fall below previous levels have further fueled uncertainty and discontent.
Regional labor representatives warned that while South Korea’s three major shipbuilders have recorded substantial operating profits, subcontracted workers’ wages remain near minimum levels. They added that the widening gap in treatment is accelerating the departure of skilled workers and deterring younger generations from entering shipyard employment.
