According to Ajunews reporting on Wednesday, Hanwha Ocean decided to pay last year’s performance bonus at 400% of monthly base pay, its highest level since the company’s launch. The bonuses are scheduled to be paid in full on Thursday. The move is seen as reflecting improved results during the shipbuilding upcycle and a push to more directly reward contributions at production sites.
The shipbuilding industry has long faced criticism that subcontracted workers handle about 60% of production processes but receive significantly lower welfare benefits and bonuses than direct employees.
Hanwha Ocean said late last year it would pay the same performance bonus to both groups as part of labor-management cooperation. In 2024, Hanwha Ocean employees received bonuses equal to 150% of base pay, while workers at partner firms received 75%. Under the new plan, both direct and subcontracted workers will receive the same bonus rate.
Industry observers said the decision could help ease the sector’s dual labor structure. With a shortage of skilled workers persisting during the boom, broader profit-sharing could help curb worker outflows and encourage new hiring.
Samsung Heavy Industries has previously paid the same bonus rate to prime and subcontract workers, but the amounts were relatively limited, making Hanwha Ocean’s decision stand out, analysts said.
The move also complicates calculations across the industry, as it could fuel demands for larger bonuses at shipbuilders already in conflict this year with subcontractor unions over bonus negotiations.
Another pressure point is the planned March implementation of the so-called Yellow Envelope Act, revisions to Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act. The bill calls for prime contractors to negotiate directly with subcontractor unions when the prime contractor exercises substantial control over subcontract workers’ conditions.
Against that backdrop, HD Hyundai Heavy Industries postponed performance bonuses for subcontracted workers that had been slated for payment in December to February. By contrast, it plans to pay its direct employees performance bonuses of about 800% this month.
Analysts also said Samsung Heavy Industries faces growing pressure over bonus levels. While it pays the same bonus rate to prime and subcontract workers, it differentiates payments by years of service, and its overall bonus level is known to be the lowest among the three major shipbuilders.
“Combined with labor issues such as the Yellow Envelope Act, Hanwha Ocean’s move has become even more symbolic,” a shipbuilding industry official said. “In reality, compensation levels inevitably vary depending on each company’s performance and financial conditions, but one company’s decision can be treated as an industrywide benchmark, creating a significant burden.”
* This article has been translated by AI.
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