An aerial view of the HD Hyundai Heavy Industries shipyard. [HD Hyundai Heavy Industries]
An aerial view of the HD Hyundai Heavy Industries shipyard. [HD Hyundai Heavy Industries]

Following Hanwha Ocean, the subcontractor union at HD Hyundai Heavy Industries — South Korea's largest shipbuilder — is also set to pursue strike authorization.

Since the revised labor union law, known as the "yellow envelope law," took effect in March, subcontractor unions in the shipbuilding industry — where subcontracted workers make up a large share of the workforce — have been aggressively preparing for industrial action. With this year's summer labor offensive approaching, a full-blown standoff between labor and management is now taking shape.

The in-house subcontractor union at Hyundai Heavy Industries, affiliated with the Korean Metal Workers' Union under the Korean Confederation of Trade Unions (KCTU), plans to file a mediation request against HD Hyundai Heavy Industries next month. "We have sent multiple written requests for negotiations to HD Hyundai Heavy Industries, but actual talks have not taken place," a union official said. "If this situation continues through August, we will proceed with a mediation filing."

Filing for mediation is the standard procedure unions follow to secure the legal right to strike. When collective bargaining reaches an impasse, either party can apply to the labor relations commission; if the commission issues a ruling to suspend mediation, the union gains the legal right to strike.

Since the yellow envelope law passed, subcontractor unions recognized as having employer status have been racing to put strike measures in place. Hanwha Ocean currently faces the most imminent threat of a walkout — its subcontractor union was the first among subcontractors to receive a mediation suspension ruling, and has since held a press conference announcing plans for a joint strike covering production-line subcontractors as well as in-house catering workers.

Should HD Hyundai Heavy Industries' subcontractors join Hanwha Ocean in striking, this year's summer labor offensive in the shipbuilding sector could escalate into an all-out conflict.

The potential damage is particularly acute in shipbuilding, where subcontracted workers account for a large share of the labor force, meaning production disruptions could be more severe than in previous years. When a subcontractor union recognized as having employer status goes on strike, the ban on bringing in replacement workers adds further pressure on prime contractors.

Song Yeon-chang, an attorney at law firm Yulchon, explained the legal shift. "In the past, prime contractors responded to subcontractor strikes by temporarily hiring other subcontractors, but once employer status is recognized, that kind of response is legally prohibited," he said.

The strike movement among subcontractor unions is spreading to other industries. This month, a subcontractor union at Posco secured strike rights, and the plant construction workers' union — which counts numerous construction subcontractors among its members — also plans to file a mediation request with the labor relations commission this month.

Business circles are watching the trend with concern, expecting it to continue until unions launch full-scale strikes during the summer labor offensive. August in particular is expected to see a surge in mediation filings, as a mediation suspension ruling from the labor relations commission requires a certain number of accumulated bargaining attempts between the two sides. An industry official said: "Unions that gained employer status after the yellow envelope law passed in March have been stacking up more than 10 rounds of bargaining demands, and are now filing for mediation as the second half of the year begins."

The HD Hyundai Heavy Industries subcontractor union is currently demanding a 30 percent wage increase and year-end performance bonuses equivalent to those received by regular full-time employees.


klee@heraldcorp.com