Employees of South Korea’s HMM are threatening to go on strike if they fail to win a wage increase.
According to news agencies, 98% of 755 of the liner company's unionised land-based employees have voted to take industrial action if an agreement with management is not reached.
An HMM spokesman confirmed the threat but added that the strike will not take place immediately.
“The official negotiation between the management and the union is scheduled for tomorrow,” he said on Tuesday.
“Both parties — the management and the unions — have continued to negotiate, despite differences in their position, to avoid extreme situations such as industrial actions. They are well aware of where they stand, so HMM will do its best to reach a mutually beneficial agreement.”
The sides have not disclosed how much of a pay rise is being sought.
Seafarers' demands
HMM will also resume pay negotiations with the labour union representing seafarers on Wednesday. It is reported to be asking for a 25% increase this year with a bonus of 1,200% of monthly salary — which translates to a full year’s salary.
Annual pay rises were halted between 2012 and 2019 as the company’s earnings improved.
About 92% of 424 seafarers sailors have voted to step down if wage negotiations fail. The crew members are choosing to resign in protest because, under South Korean law, strikes are not permitted aboard vessels operating outside of the country.
The crew were reported to be considering joining Mediterranean Shipping Co (MSC), which is hiring and offering wages at 2.5 times the HMM salary.
HMM was established in 1976 and is the largest liner operator in South Korea. State-owned Korea Development Bank holds a 24.96% stake.
The company recently posted an operating profit of KRW 2.408trn ($2bn) for the first half of 2021.
Its revenue rose 98.4% to KRW 5.335trn in the six months, compared with KRW 2.69trn in the same period last year.
HMM recorded a net profit of KRW 364.6bn, against a loss of KRW 37.5bn in the same period last year.
Two months ago, the company splashed out close to $1.57bn by ordering 12 neo-panamax containerships at South Korean shipyards.
It contracted Hyundai Heavy Industries and Daewoo Shipbuilding & Marine Engineering to build six vessels each for delivery in the first half of 2024.
