Subcontractor union stages sit-in demanding joint bargaining with Welliv branch

Hanwha Ocean says it will negotiate immediately if union drops joint-bargaining demand

Company awaits court ruling on employer status while citing 89 billion won in bonuses for partner workers

An aerial view of Hanwha Ocean's Geoje shipyard in South Gyeongsang Province. [Hanwha Ocean]
An aerial view of Hanwha Ocean's Geoje shipyard in South Gyeongsang Province. [Hanwha Ocean]

Hanwha Ocean expressed deep regret Thursday over a high-altitude sit-in by the Geoje-Tongyeong-Goseong Shipbuilding Subcontractor Branch — referred to here as the subcontractor branch — and said it would respond in accordance with the law.

In a statement issued Thursday, the company said it "expresses very serious regret" over the subcontractor branch's illegal occupation and high-altitude sit-in, adding that it would handle both negotiations and the illegal occupation "in accordance with legally established procedures and principles."

Hanwha Ocean said its pending injunction request and administrative lawsuit — related to ongoing negotiations with the Korean Metal Workers' Union's Welliv branch — were filed to seek a court ruling on the scope of employer status between a prime contractor and its subcontractors. "If the court rules that we have a bargaining obligation, we plan to respect that ruling and proceed with the necessary follow-up steps," the company said.

The company said it had repeatedly made clear its willingness to negotiate with the subcontractor branch, noting that it had fulfilled its initial obligation to publicly announce the bargaining request and had conveyed the same intent throughout related procedures, including correction and mediation requests.

Hanwha Ocean said it was prepared to begin negotiations immediately if the subcontractor branch dropped its demand for joint bargaining with the Welliv branch and agreed to negotiate with the company on its own. However, the subcontractor branch had continued to insist on bargaining jointly with the Welliv branch, leaving talks at a standstill.

The company acknowledged that the labor relations commission had recognized Welliv's employer status but said it found the legal reasoning difficult to accept given precedents at other companies, and that a court ruling was therefore necessary. To prevent a prolonged deadlock, Hanwha Ocean filed both an administrative lawsuit and an injunction request — which allows for a faster ruling — on July 20 and expected a decision soon.

The company also said the subcontractor branch's seizure of an operational crane — an essential production facility — while demanding bonuses for both the subcontractor branch and the Welliv branch constituted an illegal occupation that far exceeded the bounds of legitimate industrial action. It said the act could amount to a violation of the Trade Union Act and may also constitute obstruction of business operations.

Hanwha Ocean highlighted its efforts to support partner companies. Earlier this year, it applied the same bonus rate as its own employees to workers at partner firms, resulting in 89 billion won ($65.6 million) in performance bonuses paid to approximately 10,000 partner-company workers. The company also said it had, in a spirit of goodwill, withdrawn a 47 billion won damages lawsuit that the former Daewoo Shipbuilding & Marine Engineering had filed against the subcontractor branch.

"We find it deeply regrettable that the union is resorting to the extreme measure of an illegal occupation to pressure the company while disregarding the ongoing legal process through which we are seeking a court ruling," Hanwha Ocean said. The company added that continuing a high-altitude sit-in at a shipyard where large structures and heavy equipment are in constant operation posed a serious safety risk and could significantly disrupt normal operations.

"Efforts toward mutual growth and responses to illegal acts are separate matters," the company said. "We will continue working to improve conditions for partner-company workers and pursue mutual growth, but we will respond firmly and in accordance with the law to any illegal acts or actions that threaten safety." The company urged those taking part in the sit-in to stop the dangerous and unlawful behavior and return safely to the worksite.


keg@heraldcorp.com