Unionised workers at busy shipbuilders in South Korea downed tools today, in a first round of strikes that will likely continue next month.
Labour unions, consisting of eight shipyard chapters, launched a two-to-five-hour joint partial strike at yards including HD Hyundai Heavy Industries, HD Hyundai Samho and Hanwha Ocean after failing to reach a wage agreement over pay packages.
Other builders, such as HSG Sungdong and K Shipbuilding, are also affected, with the exception of HD Hyundai Mipo, which has not yet obtained the right to strike, HJ Shipbuilding & Construction, as well as Samsung Heavy Industries, which has decided to go on strike but to stage on-site protests initially.
The shipbuilders’ unions are demanding an increase in unionists’ basic salaries, a wage peak system, an extension of their retirement ages, and more new hires.
South Korea has had a significant manpower shortage in recent years, exacerbated by increased shipbuilding contracts. The government has been trying to mitigate this by increasing the yearly limit for skilled worker visas and forming training and recruitment agreements with surrounding nations.
The country’s three major shipbuilders have accumulated their workloads for the next three to four years and seen their utilisation rates spike, but concerns have been raised that if the strike escalates, it could disrupt production and delay delivery schedules.
Further strikes are planned for September 9, if talks over collective bargaining agreements fail.
Labour strikes have previously occurred at South Korean shipyards. In 2022, key labour unions in the shipbuilding sector decided to strike over pay demands and working conditions. The strike was the country’s second significant industrial dispute that year, following a truckers’ strike that halted operations at key industrial sites and ports.