A general strike at three Hyundai shipyards is in prospect, with unions and employers still apparently miles apart on a wage agreement.
The latest management offer to increase basic pay by KRW 80,000 ($60.50) falls short of the unions’ demand for a rise in excess of KRW 100,000.
According to local reports, workers have already downed tools for several hours this week as part of the pay protest.
That will be extended to a full general strike at Hyundai Heavy Industries, Hyundai Mipo Dockyard and Hyundai Samho Heavy Industries from Tuesday next week if management and union representatives cannot come to an agreement.
No time limit has been set for the planned industrial action.
A strike would be costly for Korea Shipbuilding & Offshore Engineering (KSOE), which owns the three Hyundai yards, if it results in production delays and affects sales.
The combined KSOE shipyards have 399 ships on order amounting to 32.8m dwt, according to broker Clarksons.
Financial paper Business Korea quoted analysts’ estimates that a strike could cost the group up to KRW 9bn per day.
Industrial relations
KSOE will be keen to avert the sort of prolonged 52-day industrial action that hit Daewoo Shipbuilding & Marine Engineering in the summer.
The strike was reported to have cost DSME KRW 800bn.
The Hyundai yards have prided themselves on their good industrial relations in recent years, with little industrial action compared with other South Korean yards.
