Hanwha Ocean Proposes Wage Increase Amid Ongoing Labor Negotiations

by SHIN JIA Posted : October 7, 2026, 19:08Updated : October 7, 2026, 19:08

Hanwha Ocean and the primary labor union are engaged in prolonged wage and collective bargaining negotiations, while the first collective bargaining session with the subcontractor union is set to begin. Following a strike by the primary union and a sit-in protest by the subcontractor union, the outcomes of both negotiations have garnered significant attention from the local community.


According to labor sources on October 7, the Hanwha Ocean branch of the National Metal Workers' Union held its 27th round of negotiations in the afternoon.


During the negotiations, Hanwha Ocean presented a third proposal that includes a base salary increase of 138,689 won and a one-time payment of 7.5 million won. The base salary increase consists of a 115,000 won base-up and a 23,689 won promotion and advancement increase, effective from March 1 of this year.


The one-time payment includes 4.5 million won for the settlement date, 1 million won as a mutual encouragement payment, and 2 million won as an AX innovation incentive, totaling 7.5 million won. The company also proposed that if the agreement is approved at the union's general meeting, the payment would be made within five business days.


Additionally, the company expanded its welfare proposals, offering annual welfare points worth 1 million won and increasing the support for children before school from 100,000 won to 300,000 won per month. Other proposals include an increase in some congratulatory payments, the provision of funeral services, and a re-employment plan for retirees. For those born in 1966, the plan allows for one year of contract work after retirement, enabling them to work until the age of 61.


Furthermore, if this year's negotiations are concluded, the company will grant one special day off and operate a 'Performance Bonus Improvement Task Force (TF)' composed of labor and management representatives until the end of the year. The TF aims to establish performance bonus criteria based on objective indicators such as operating profit, sales, operating profit margin, and safety metrics.


The union is demanding a base salary increase of 149,600 won, a bonus of 900%, an extension of the retirement age, and improvements to the performance bonus system. The gap between the union's demand and the company's third proposal has narrowed to 10,911 won regarding the base salary increase. However, differences remain regarding bonuses and the method of performance bonus payments.


Previously, the company had proposed a second offer that included a 100,000 won base salary increase and a one-time payment of 6.5 million won, along with annual welfare points worth 1 million won. With the third proposal, the company has increased both the base salary and one-time payment amounts in an effort to bridge the gap with the union.


Since their first meeting on June 4, the labor and management have conducted a total of 26 rounds of negotiations but have yet to reach an agreement. The union has continued its strike, including halting operations of the Goliath crane at the Geoje plant last month.


In addition to the negotiations with the primary union, collective bargaining with the subcontractor union is also set to intensify. Hanwha Ocean plans to hold its first collective bargaining session with the Geoje Tongyeong Goseong Shipbuilding Subcontractor Union and the Wellive Union on October 8 at 2 p.m.


This session comes about seven months after subcontractor workers demanded collective bargaining with Hanwha Ocean.


The negotiations were prompted by a ruling from the Central Labor Relations Commission, which determined that workers affiliated with Wellive should also be included in Hanwha Ocean's collective bargaining discussions. This followed the dismissal of Hanwha Ocean's request for a stay of execution by the court on October 1.


As negotiations have stalled, six members of the subcontractor union, including Kang In-seok, the head of the Geoje Tongyeong Goseong Shipbuilding Subcontractor Union, have begun a sit-in protest at Hanwha Ocean's Geoje plant. They plan to continue their protest until the collective bargaining is concluded.





* This article has been translated by AI.