HMM’s land-based workers’ union said Thursday that talks with management regarding the headquarters relocation had broken down. The union added it plans to begin procedures for industrial action, including filing for mediation with the labor authorities.
In a statement released the same day, the union expressed regret over the collapse of negotiations, blaming what it described as the company’s unilateral push to relocate the headquarters.
“It is deeply regrettable that negotiations collapsed due to the company’s unilateral attempt to proceed with the headquarters relocation,” the union said. “Filing for mediation is an unavoidable step to protect the rights of our members.”
Despite moving toward industrial action, the union emphasized that it remains open to continued dialogue with management.
“Applying for mediation does not mean a breakdown in communication,” the union said. “We are always ready to sit down with management with an open attitude and seek a reasonable solution.”
The union also urged the company to take a “sincere and forward-looking approach” in future negotiations.
The breakdown in talks is expected to intensify labor-management tensions over the headquarters relocation. Depending on the outcome of mediation by the labor commission and whether the union secures legal grounds for industrial action, the dispute could escalate into collective actions such as strikes.
The conflict comes as the headquarters relocation appears to be nearing finalization. On March 31, HMM’s board approved amendments to the company’s articles of incorporation to relocate its headquarters to Busan.
The move is backed by major shareholders including Korea Development Bank, which holds a 35.42 percent stake, and Korea Ocean Business Corp., which owns 35.08 percent, giving them a combined stake exceeding 70 percent.
Meanwhile, the recently enacted “Yellow Envelope Law” — revisions to Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act — designates workplace relocation as a mandatory subject for labor-management negotiations. This has increased the likelihood that the relocation could trigger labor disputes if pursued without agreement.
Industry observers are also watching closely, noting that the dispute could extend beyond a simple relocation issue and impact the broader shipping sector. As HMM is South Korea’s largest national shipping company, prolonged labor tensions could potentially lead to disruptions in logistics operations, they added.
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