Hanwha Ocean has urged the labor union representing its permanent employees—who have launched a sit-in protest atop a crane—to return to the negotiating table. The shipbuilder stated that it has prepared a proposal focused on long-term increases to base wages and benefits, aiming to conclude the 2026 wage and collective bargaining negotiations as soon as possible.
In a recent statement, Jeong In-seop, Chief Administrative Officer of Hanwha Ocean, declared: “Actions that threaten safety and production can never be a basis for compromise. If we are to make progress in these negotiations, both sides must engage in discussions at the negotiating table, rather than through a standoff atop a crane.”
Since June, Hanwha Ocean and its labor union have held nearly 30 rounds of negotiations, yet they have failed to reach a consensus. On October 7, Hanwha Ocean presented a third proposal, which included an increase in the monthly base salary by 115,000 KRW (approximately $85.26) and a one-time bonus of 7.5 million KRW (approximately $5,560.50). However, the union, arguing that the offer failed to adequately reflect the gains from the shipbuilding industry’s current boom, staged a sit-in protest atop a crane at the Geoje shipyard early on the morning of October 8.
In an effort to de-escalate the labor-management conflict, Hanwha Ocean has presented a third wage proposal. This offer focuses on sustained improvements to base pay and benefits, including raising base wages to a level comparable to industry peers, providing 1 million KRW (approximately $741.40) in annual welfare credits, and increasing family support allowances.
Regarding the core issue of “re-employing mandatory retirees,” Hanwha Ocean stated that it had reviewed the labor union’s proposal for a “one-year plus one-year” arrangement. However, the company remarked: “It is difficult to accept an unconditional one-year extension of the retirement age, as this fails to account for on-site operational realities or the primary objective of workforce management—which is to expand new recruitment.”
Regarding performance bonuses, Hanwha Ocean has proposed the establishment of a dedicated task force (TF) to discuss and refine the criteria for distributing financial performance-based bonuses. The shipbuilder stated that this initiative is not intended to circumvent the revision of these criteria, but rather to develop—through consultation—assessment metrics that are satisfactory to both parties.
Regarding the incident involving the occupation of a crane, Hanwha Ocean has taken a firm stance, stating unequivocally: “Any actions that threaten safety or production cannot be a subject for compromise. This sit-in at a high elevation constitutes an ‘illegal occupation,’ and there are concerns that it could compromise on-site safety, disrupt production operations, and delay the launching and delivery schedules of vessels.”
Hanwha Ocean has taken a firm stance on the crane occupation incident, stating bluntly: “Any action that threatens safety and production must never be subject to compromise. We consider this high-altitude sit-in to be an ‘illegal occupation’ and are concerned that it will affect on-site safety, production operations, and the schedule for ship launching and delivery.”
Hanwha Ocean specifically pointed out: “ ‘In 2022, the union representing regular employees criticized the occupation as “a path of mutual destruction that hinders normal production activities and threatens the survival of the company and its union members.” Now, the union has abandoned the principles it once emphasized and, knowing full well that the cranes have been occupied, is once again taking this “path of mutual destruction”… We call on all parties to work together toward a swift and amicable resolution of the dispute, as well as toward building a sustainable and safe company where all employees can take pride in their work.’”