- HD Hyundai Workers Reject Wage Proposal Amid Pay Dispute.
- Hanwha Finalises Pay Talks, HD Hyundai Faces Setback.
- Hanwha Agrees to Largest-Ever Wage Hike, Hyundai Union Says No.
Hanwha Ocean has made history by becoming the first South Korean shipbuilder in 2025 to conclude its annual wage negotiations, securing a tentative agreement that received approval from 61.7% of union members in a recent vote. The company highlighted that finishing these discussions before the summer holidays helps to ease management uncertainty, allowing for a sharper focus on production in the latter half of the year, reports Lloyd’s List.
Record Wage Increase and Bonuses for Hanwha Employees
This agreement features a basic wage bump of Won 123,000 ($90) — the largest increase in the company’s history — along with a one-time bonus of Won 5.2 million. Compared to last year, this represents an increase of Won6,000 in base pay and Won1.5 million in bonus payments.
Hanwha Ocean pointed out that the higher base salary is likely to boost employee morale and retention. Plus, a new job compensation system has been introduced, tying pay to the difficulty of the job.
HD Hyundai Workers Reject Tentative Wage Deal
On the flip side, HD Hyundai Heavy Industries (HD HHI) has hit a snag, as its labour union voted against a tentative wage agreement. Out of the 6,193 union members who cast their votes, 63.8% were opposed to the proposal.
The rejected deal included a basic wage increase of Won133,000, an incentive bonus of Won5.2 million, and additional performance-related pay.
Disagreement Over Fixed vs Variable Pay
Both management and labour recognise that with the current shipbuilding boom, workers deserve better compensation. However, management is leaning towards variable pay increases, while the union is pushing for a more substantial hike in the base wage, initially asking for an increase of Won141,300.
An official from HD HHI expressed disappointment with the current situation but assured that negotiations would keep moving forward. For now, the union isn’t planning any strikes, but it’s still up in the air when the next round of discussions will take place. With summer holidays kicking off on August 4 for ten days, it’s uncertain if a new agreement can be reached before everyone takes a break.
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Source: Lloyd’s List
