Hanwha Ocean Union Removes Items from Executive Office, Halts Goliath Crane... Is the Labor-Management Conflict Crossing the Line?

Removal of Office PCs and Equipment Unresolved for Five Months Amid Ongoing Police Investigation

Suspension of Key Production Facilities Over Demands for Performance-Based Pay

23 Rounds of Wage Negotiations Remain Deadlocked, Raising Concern

As the strike action by the labor union at Hanwha Ocean escalates to include the shutdown of key production facilities, concerns are growing that the conflict between labor and management may spill over from the production floor to impact the entire company’s management as well as the local economy.

In addition to this, an incident involving the removal of computers and office equipment from the executive offices, which has remained unresolved for several months, continues to fuel debate over the scope of the union’s rights and the impartial enforcement of the law.

On April 28, the Hanwha Ocean union entered the company’s executive offices and took computers, chairs, telephones, and other items. After demanding the return of the items and an apology, the company filed a police report, but even after about five months, the items have not been returned.

Although a police investigation is underway, a substantial amount of time has passed since the report was filed and no clear outcome has been produced regarding the incident. This has led the company to express dissatisfaction, suggesting that law enforcement may be excessively lax when it comes to union-related incidents.

The conflict surrounding the wage and collective bargaining agreement negotiations is also intensifying.

Since their initial meeting on June 4, the labor and management at Hanwha Ocean have engaged in 23 rounds of negotiations, but have failed to reach an agreement. The union is demanding a base salary increase of 149,600 won, a 900% increase in bonuses, extension of the retirement age, and the official documentation of performance bonus payment criteria.

On September 17, the company presented its second proposal, which included a base salary increase of 123,689 won, a one-time settlement payment of 6.5 million won, and annual welfare points worth 1 million won. The company also suggested the creation of a task force to improve the performance-based bonus system, but the union rejected this proposal.

The problem lies in the union's response after the collapse of the negotiations.

The union staged partial strikes on September 7, 11, and 14, and from September 15 to 18, halted operations of the Goliath crane, a key piece of equipment at the shipyard.

The Goliath crane is used to move ship hull blocks from the assembly area to the dry dock. Since the shipyard’s production process is interconnected in multiple stages, a halt in this equipment can ripple through subsequent processes. The company is particularly concerned about production disruptions, pointing out that the delays in PE and outfitting processes are inevitably leading to reduced workloads in internal and preliminary processes, and therefore causing unavoidable delays in follow-up stages.

The union’s demands for wage increases and improved working conditions are legitimate subjects of collective bargaining. However, aside from the legitimacy of negotiations, whether actions such as arbitrary removal of company assets or prolonged shutdowns of core production facilities can be shielded by labor rights is a wholly different matter.

The issue of performance-based bonuses is also a point of contention. The Ministry of Employment and Labor has indicated that demands for management performance bonuses which fundamentally violate a company’s business autonomy or the rights of third parties such as shareholders, cannot be considered compulsory bargaining subjects.

Nevertheless, as calls for improving performance bonus criteria continue alongside wage negotiations, and the shutdown of key production facilities has occurred, the company claims it is under excessive bargaining pressure.

For Hanwha Ocean, the nature of shipbuilding means that disruptions in one process can impact others, including subcontractors. With more than 1,000 partner companies in the South Gyeongsang region connected to Hanwha Ocean, the longer production schedules are delayed, the greater the impact is likely to be on partner companies and the regional economy.

Having previously suffered significant losses and production setbacks due to a subcontractor union strike, the company is alert to the risks of a prolonged labor dispute this time.

Ultimately, the crux of this situation goes beyond mere disputes over the extent of wage increases. The real issue at stake includes the scope of collective bargaining and strike rights granted to labor unions, and whether the legal decisions concerning the removal of company property and the shutdown of core facilities are being properly adjudicated.

A legal expert commented, "The rights of workers must be respected, but those rights cannot become unlimited justification for removing company assets or shutting down production facilities at will," adding, "The longer industrial conflicts continue, the more important it becomes to balance the protection of labor rights with upholding the principles of law enforcement."

Hanwha Ocean.

This content was produced with the assistance of AI translation services.