South Korean shipbuilders clash over record bonus demands amid profit surge
South Korea’s shipbuilding industry is facing growing demands from workers for a larger share of profits. With orders surging, employees argue their efforts have driven the sector’s success. Yet management warns that excessive bonus payouts could risk stability in a cyclical market. Workers at HD Hyundai Heavy Industries have called for at least 30% of the company’s operating profit to go toward employee compensation. The union estimates this year’s operating profit will reach around 3.63 trillion won, meaning at least 1.09 trillion won would be set aside for performance-based pay. In 2021, the company reportedly paid about 418.2 billion won in bonuses.
The push for profit-sharing comes as the industry struggles with a shortage of skilled labour and rising wages. Union officials argue that workers’ contributions are essential to the sector’s growth and deserve fair rewards. Meanwhile, management has cautioned against large bonus payouts, citing the industry’s history of boom-and-bust cycles. Similar discussions are expected at other major shipbuilders, including Hanwha Ocean and Samsung Heavy Industries, as unions prepare for this year’s wage negotiations.
The dispute highlights tensions between workers seeking better pay and companies wary of financial risks. If demands are met, bonuses could reach record levels. The outcome may shape labour relations in one of Korea’s key industrial sectors.
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