HMM workers have cancelled a planned strike after reaching a last-minute wage deal, ending a 77-day dispute.
The agreement was achieved after an 18-hour meeting with management, a spokesman for the South Korean liner operator confirmed.
HMM and labour unions representing unionised crew and office employees have agreed to a 7.9% pay increase and incentives of up to 650% of a worker’s monthly salary.
“After productive talks and discussions, both the management and the unions could reach an amicable resolution based on goodwill and mutual understanding,” the spokesman said.
“To date, there have not been any disruptions to our service routes and vessel operations. All things currently remain normal.”
Staff were seeking a pay rise following the company’s improved earnings and to make up for annual increases that were halted between 2012 and 2019.
About 98% of HMM’s 755 unionised land-based employees and 92% of its 424 unionised seafarers had voted to take industrial action if an agreement was not reached.
The seafarers were reported to be asking for a 25% increase this year, with a bonus of a full year’s salary.
They were threatening to resign in protest because, under South Korean law, strikes are not permitted on board vessels operating outside of the country.
Many of them were reported to be considering joining Mediterranean Shipping Co, which is hiring and offering wages more than double an HMM salary.
A mass resignation of crew and a strike by office employees would have been a heavy blow to HMM amid the strong containership market and tight crew supply situation caused by the Covid-19 pandemic.
