HMM Seonwon Union "Shared 6 Years of Pain for Shipping Reconstruction, but Only 1% Raise?" Backlash

"Sharing Pain During Deficits, Ignoring When Profitable" Strike Mentioned

[Asia Economy Reporter Yoo Je-hoon] Crew members belonging to HMM (formerly Hyundai Merchant Marine) are demanding a strike in protest against the company's proposal of a wage increase in the 1% range. Despite the COVID-19 pandemic, HMM succeeded in turning a profit for the first time in 21 quarters, but the company's concerns are deepening.

According to the shipping industry on the 14th, the HMM Seafarers' Union, affiliated with the Korean Confederation of Trade Unions' National Maritime Seafarers' Union, issued a statement saying, "We have endured everything for the reconstruction of Korean shipping, and as a result, posted the largest profit in history, but the creditors and management proposed a 1% wage increase plan, saying debts must be repaid."

According to the union, since the shipping industry crisis began in earnest, wages for maritime workers have been frozen for six years (2013?2019), and this year’s increase was limited to 1%. Labor and management are continuing negotiations on next year’s wages, but the company is reportedly proposing a 1% increase plan (with a 1.8% performance bonus), citing over 3 trillion won in debt to be repaid and uncertainty about next year’s market conditions.

Jeon Jeong-geun, chairman of the HMM union, pointed out, "Since the COVID-19 pandemic, securing and disembarking seafarers has become difficult, and once a ship departs, crew members have to endure being in a 'prison without bars' for eight months without leaving the vessel." He added, "While container ships are getting larger and technological changes are occurring due to environmental regulations, workloads are increasing, but compensation for employees remains at the minimum level."

Chairman Jeon also emphasized, "Due to the nature of the shipping industry, the labor cost ratio is only about 2?3%, unlike other industries such as shipbuilding. When there were losses, we shared the pain, but now that there are profits, management ignores us. In this reality, I don’t know why we should work."

In response, the HMM union has filed a mediation request with the Central Labor Relations Commission. Chairman Jeon added, "Under current law, strikes are not allowed on vessels that are underway or docked at foreign ports, but strikes are possible on vessels anchored in domestic ports."

Meanwhile, HMM recorded an operating profit of 138.7 billion won in the second quarter, successfully turning a profit for the first time in 21 quarters, and posted a profit of 277.1 billion won in the third quarter as well. The industry expects HMM to achieve an annual profit turnaround this year.

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