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By Lee Hyo-sik
Unionized workers of Hyundai Heavy Industries (HHI) have voted in favor of a strike, further cornering Korea's largest shipbuilder that has been struggling with falling orders and worsening profitability. However, union leaders said they will delay a full-scale strike, adding that they will resume wage negotiations with management.
According to the HHI labor union, Thursday, 57.6 percent of unionized workers cast ballots from Sept. 23 through Oct. 22. Of the 10,313 who voted, 97.1 percent (10,011), voted in favor of a strike. The union held the vote for the first time since 2001 and if employees stop working, it would be the first collective action in 20 years.
But union leaders said they will hold a wage negotiation with the management at 10 a.m. Friday to iron out their differences. The union has been demanding that the company increase the base salary by 6.51 percent (132,000 won), and pay a lump sum bonus, 2.5 times a base wage, among others.
However, the company has refused to accept the union demand, saying the wage hike is not practical when it is losing money.
"We will do everything we can to reach an agreement with the union to avoid the strike. We hope that workers understand how difficult it is for the company to accept their demand," an HHI spokesman said.
In the first half of 2014, the shipbuilder posted an operating loss of 1.3 trillion won, the worst performance in its 42-year history.
The outlook for the company is not bright either, according to analysts. HHI is expected to continually face difficulty in securing shipbuilding and plant orders amid intensifying competition. Its profitability will not improve much due to the strengthening won against the dollar and other foreign currencies.
To ride out the worst crisis of its 42-year history, the shipbuilder has introduced overhaul measures. The company dismissed 31 percent of its executives and reduced the number of its business units from 58 to 45 to cut costs.
