HMM Land Labor Union Approves Strike... Concerns Over Export Logistics Crisis

Approval Rate 97.88% Passed
Final Decision After Labor-Management Consultation Tomorrow

The strike vote by HMM's land labor union was approved on the 31st. With the land union joining the sea labor union in favor of the strike, the possibility of a logistics crisis for domestic export companies has become more likely.

According to HMM's land labor union, a strike vote was conducted from 8 a.m. on the 30th to 8 a.m. on the same day among 791 union members, resulting in a turnout rate of 95.45% (755 members) and an approval rate of 97.88%. The opposition rate was 2.12%.

As a result, the two unions of HMM can now initiate strike actions or other disputes at any time. If the land and sea labor unions jointly go on strike, it would be the first strike since the company's founding in 1976. Previously, the sea labor union approved a strike vote last week with a 92.1% approval rate among voters and announced that it would respond through a joint struggle committee.

However, the industry expects that HMM's land and sea labor unions will not immediately start strike or collective actions. The two unions had planned to hold a joint press conference for their struggle on the day but postponed it to the 2nd of next month. They plan to finalize their position after reviewing the results of a labor-management representative meeting scheduled for the 1st of next month, involving HMM President Bae Jae-hoon, Land Labor Union Chairman Kim Jin-man, and Sea Labor Union Chairman Jeon Jeong-geun.

Whether a dramatic agreement will be reached in the labor-management talks remains uncertain. Currently, the management side has proposed a revised plan through consultations with creditors, including an 8% wage increase, a 300% bonus, and an additional 200% incentive payment after the year-end settlement. On the other hand, the two unions are demanding wage normalization after eight years of freeze, calling for a 25% wage increase and a 1200% performance bonus, so the gap remains.

If no agreement is reached in the labor-management representative talks, the reality of a strike and logistics crisis will come one step closer. The sea labor union has already collected resignation letters from more than 300 members and plans to submit them to management and engage in lawful struggle if they join collective actions with the land labor union.

There is still a possibility of a last-minute settlement. The government is showing its determination to prevent the worst-case scenario by playing a behind-the-scenes mediator role.

Last week, Moon Sung-hyuk, Minister of Oceans and Fisheries, appeared before the National Assembly's Agriculture, Food, Rural Affairs, Oceans and Fisheries Committee and stated, "It is not a situation where I can directly intervene in the HMM labor-management negotiations," but added, "We will support the consultation process among export-import logistics-related ministries, both labor and management sides, and creditors while observing the voluntary negotiation process."

An HMM official said, "The union side has expressed that they will actively engage in negotiations if the management presents a progressive proposal," and added, "HMM management is also persuading the union to approach negotiations with a more open attitude, fearing a logistics crisis."

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