HANWHA Ocean has become the first South Korean shipbuilder this year to finalise its wage bargaining negotiations, with a tentative agreement approved by 61.7% of union members in a recent ballot.

The company highlighted that concluding talks before the summer holidays has reduced management uncertainty, allowing both labour and management to “focus on production for the second half of the year”.

The final agreement features a basic wage increase of Won123,000 ($90), marking the largest-ever rise for the company, along with a lump sum bonus of Won5.2m.

These represent increases of approximately Won6,000 and Won1.5m, respectively, over last year’s terms.

Hanwha Ocean expects the higher basic salary to boost employee morale and help retain staff. In addition, a new job compensation system has been introduced, with pay varying according to job difficulty.

Meanwhile, at HD Hyundai Heavy Industries the labour union has voted to reject the tentative agreement reached during the recent round of wage talks. Of the 6,193 union members who participated in the ballot, 63.8% voted against the proposal.

The rejected deal included a basic wage increase of Won133,000, an incentive bonus of Won5.2m, as well as additional payments for special incentives and performance-related pay.

Although both sides agreed on the need for increased compensation amid the current shipbuilding boom, management favoured boosting variable pay, while the union prioritised growth in the basic wage.

The union had initially demanded a basic salary increase of Won141,300.

An official from HD HHI expressed regret over the rejection, stating that efforts to finalise negotiations would continue.

A union representative told Lloyd’s List the timing of the next round of wage talks was unclear, but there were no plans for strike action.

With the company’s summer vacation scheduled to begin on August 4 for 10 days, attention now turns to whether a new deal can be reached before the holidays.