Unions at major South Korean shipbuilders are continuing industrial action and wage negotiations, with a group representing workers at eight shipbuilding companies preparing to consider coordinated action after the Mid-Autumn Festival.
At HD Hyundai Heavy Industries, the union began strike action on 2 September after securing the right to strike on 27 August. The union planned seven-hour daily strikes from 16 to 18 September as negotiations over 2026 wages and the collective agreement remained unresolved.
Talks began on 2 June. The union is seeking a monthly base salary increase of KRW 149,600, a 100% increase in bonuses and the allocation of at least 30% of operating profit to employee performance bonuses.
During the 20th round of formal negotiations on 10 September, HD Hyundai Heavy Industries offered a KRW 110,000 increase in monthly base salary. Its proposal also included an incentive equivalent to 200% of base salary plus a KRW 10 million lump sum and KRW 500,000 in gift vouchers. The union rejected the proposal.
The Ministry of Employment and Labor addressed the performance bonus issue in negotiation guidelines issued on 3 September. It said demands linking bonuses to a specified share of corporate profits are not mandatory subjects for collective bargaining because they could affect third-party interests and restrict management decisions.
Industrial action is also continuing at Hanwha Ocean. More than 4,700 union members have taken part in partial and full-day weekday strikes since 31 August. As of 15 September, the action had continued for 12 days. An eight-hour strike on 9 September stopped some cranes and transport equipment at the Geoje shipyard.
During negotiations on 8 September, Hanwha Ocean proposed a KRW 95,000 monthly base salary increase, a KRW 5.5 million one-time bonus, KRW 600,000 in annual welfare points and KRW 1.5 million in gift vouchers.
The union is seeking a KRW 149,600 monthly base salary increase and an increase in the bonus rate from 800% to 900%. Its demands also include extending the retirement age and changing the bonus distribution system. The two sides have not reached an agreement.
At Samsung Heavy Industries, workers have not started a strike. The company and its labor council had held 16 rounds of negotiations since May without a wage proposal from management. The labor council did not participate in a 17th round of talks scheduled for 10 September and instead held protests in Seoul.
The labor council is seeking a 9.3% increase in the 2026 base wage, removal of the wage peak system, an extension of the retirement age and additional recruitment of frontline workers. It secured a mandate for strike action through a vote in July.
The Shipbuilding Industry Union Alliance, which consists of unions at eight South Korean shipbuilding companies, is also preparing its next steps. If management does not provide a proposal acceptable to union members and wage talks remain unsettled by 18 September, the alliance plans to convene a representatives’ meeting and prepare a broader course of action, including a possible joint strike after the Mid-Autumn Festival.
