Labor disputes surrounding wage and collective bargaining agreements are intensifying across the shipbuilding and steel industries. In booming sectors, demands for profit-sharing are rising, while in struggling industries, calls for real wage preservation and improved working conditions are gaining momentum. With the gap between labor and management showing little sign of closing, tensions surrounding these negotiations are expected to persist.
According to industry sources, the shipbuilding sector, which has recently seen a surge in orders, is experiencing heightened labor disputes over bonuses. As the industry emerges from a prolonged downturn, unions are increasingly asserting that the benefits of the recovery should be shared.
HD Hyundai Heavy Industries, a leading player in the shipbuilding sector, has been engaged in collective bargaining since June but has yet to reach an agreement. On the afternoon of the 27th, the two sides entered their 17th round of negotiations, but significant differences remain on key issues, suggesting that a resolution may take time. The union is currently demanding a basic salary increase of 149,600 won, a 100% increase in bonuses, and a distribution of at least 30% of operating profits as performance bonuses.
Hanwha Ocean is also facing challenges in its negotiations due to differing views between labor and management. The union is pushing for a basic salary increase of 149,600 won, along with improvements in the criteria for performance bonuses and greater transparency.
The steel industry, which is currently experiencing a downturn, is not exempt from these disputes. The Posco union has proposed a 7.1% increase in basic salary and a 600% incentive bonus, while management has countered with a 1.5% salary increase and a 2.5 million won incentive payment. The Posco union has secured the right to strike and has warned that if the gap in positions is not narrowed in future negotiations, it may initiate its first strike since the company's founding.
At SeAH Besteel, labor and management have been unable to reconcile their differences over worker treatment, putting them on the brink of a strike for the first time in 14 years. The union is demanding an extension of the retirement age to 65 and the abolition of the wage peak system, but management has reportedly expressed reluctance.
The increased difficulty of this year's collective bargaining negotiations can be attributed to heightened expectations for compensation and changes in the labor environment. Over the past few years, rising prices have led to accumulated demands for real wage preservation, and the implementation of the Yellow Envelope Law in March has expanded the scope of labor disputes.
In fact, alongside demands for bonuses, there is a simultaneous outpouring of requests regarding employment and working conditions, such as retirement age extensions and the wage peak system. Particularly in heavy and chemical industries, the aging of skilled workers and the ongoing trend of younger generations avoiding production jobs have amplified demands for improvements in wages, working hours, and overall working conditions.
An industry insider noted, "While the economic conditions and performance vary by company, the expectations of union members for wage and treatment improvements have generally increased. This year, with multiple issues intertwined, including wages, retirement, and work systems, significant challenges are anticipated in reaching an agreement between labor and management."
* This article has been translated by AI.
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