![An aerial view of HD Hyundai Heavy Industries in Dong-gu, Ulsan. [Yonhap]](https://wimg.heraldcorp.com/news/cms/2026/08/21/rcv.YNA.20260729.PYH2026072919810005700_P1.jpg)
Labor unrest is spreading across South Korea's industrial sector, with the shipbuilding industry — which has been posting record earnings — now joining the wave of summer strikes. As labor-management tensions intensify across major manufacturing sectors including automobiles and steel, unions at leading shipbuilders are ratcheting up pressure with demands for a share of the profits.
According to industry sources Friday, the Hyundai Heavy Industries branch of the Korean Metal Workers' Union will hold a strike authorization vote for all union members from 6:30 a.m. Tuesday through 1:30 p.m. Thursday. The motion passes if a majority of registered members vote in favor. The union plans to run a campaign urging members to participate through Monday.
The union filed for labor dispute mediation with the National Labor Relations Commission on Aug. 14 and subsequently formed a branch dispute committee in accordance with its bylaws. If the commission determines that the gap between labor and management is too wide and issues a mediation suspension order, and if more than half of all union members vote for a strike, the union will have secured the legal right to strike. The standard mediation period for general workplaces is 10 days from the filing date, with mediation set to conclude Monday — making Tuesday the earliest possible date for the vote.
The branch dispute committee recently held its first meeting, adopting two main agenda items: the No. 1 action guideline for all union members aimed at winning the integrated bargaining round, and the formation of branch-level dispute subcommittees. According to the union, the No. 1 action guideline calls on all members to attach a "solidarity struggle headband" or "solidarity struggle sticker" to their hard hats, and to participate in the strike authorization vote.
Labor and management have held 15 rounds of negotiations since their first meeting on June 2, but have yet to reach an agreement on this year's wage and collective bargaining talks. The union is demanding a monthly base pay increase of 149,600 won ($107), separate reflection of seniority increments, a 100 percent increase in bonuses, and a mechanism to allocate at least 30 percent of operating profit as a source of performance pay. Demands also include incorporating vacation pay and congratulatory allowances into ordinary wages, and the hiring of new workers.
Management has not yet put forward a concrete counterproposal, and fierce debate is expected over the level of base pay increases, bonus hikes and performance pay expansion in line with the shipbuilding boom. The HD Hyundai Samho union is demanding the same level of performance pay, and bonus and performance pay expansion is expected to become a key issue between labor and management at Hanwha Ocean and Samsung Heavy Industries as well.
The backdrop to the tense negotiations this year is a surge in earnings. Last year, the combined annual operating profit of HD Korea Shipbuilding, Hanwha Ocean and Samsung Heavy Industries reached 5.88 trillion won, up 170.1 percent from the previous year. Their combined operating profit for the first half of this year came to 4.78 trillion won — roughly 81 percent of last year's full-year figure in just six months. Unions argue that the strong results must be matched by commensurate compensation and profit-sharing plans.
Across the industrial sector, concern is growing that a string of strike threats in major manufacturing industries will deepen production bottlenecks. The Hyundai Motor union, a branch of the Korean Metal Workers' Union, launched a full-day strike Friday over stalled wage negotiations — the first all-out, eight-hour walkout since the 2016 collective bargaining round a decade ago. Industry estimates put the cumulative sales disruption from the strike at 2.3 trillion won. The Kia union and the Posco union are also reported to be continuing behind-the-scenes negotiations while holding secured strike rights.
keg@heraldcorp.com
