Baek Byung-yeul is a journalist at The Korea Times focused on cultural content, including films and cultural events in South Korea. You can contact him at baekby@koreatimes.co.kr to share your insights.
Labor-management conflict deepening at Hyundai Heavy
Hyundai Heavy Industries union members clash with non-union employees as they try to enter the firm's office in Ulsan, Monday. / Courtesy of Hyundai Heavy Industries
By Baek Byung-yeul
By Baek Byung-yeul
The labor-management conflict at Hyundai Heavy Industries (HHI) has been escalating as union workers intensify their protest against the company's decision to merge with Daewoo Shipbuilding & Marine Engineering (DSME), according to company officials Tuesday.
The HHI union has been staging walkouts in Seoul and its headquarters in Ulsan since May 16 and the protest has turned into violent clashes between union and non-union employees.
HHI said it filed a complaint with the police against more than 60 union members for leading violent clashes when about 500 union members tried to enter the firm's office building in Ulsan Monday.
While entering the building the union members clashed with non-union employees and dozens of people were injured, the firm said.
The firm also filed a complaint with police in Seoul against dozens of union members for obstruction of business and assault as the union members allegedly rammed police officers when staging a walkout near the firm's Seoul office on May 22.
“We will also respond strictly to the union's illegal action against the firm,” a spokesman of the firm said.
Since Monday, the union also has occupied Hanmaum Center, an art center in Ulsan where the firm's shareholders' meeting will take place. It added it launched a large-scale walkout with 8,000 union members starting Tuesday and will continue the strikes until May 31 when the plan to split HHI into two entities is scheduled to be proposed.
The confrontation between the union and management came after HHI said it will split into two entities as the first step for merging with DSME. HHI agreed to merge with the industry's No.2 shipbuilder DSME in March to enhance its competitiveness, but unions expressed their concerns over possible job cuts after the division.
Speaking of the local community's concern, an HHI spokesman said “only 50 employees will be transferred to a sub-holding company in Seoul, which will be spun off from HHI to take control of the combined shipbuilding firm and the rest of the employees will stay in Ulsan.”
He added, “To dispel such uncertainties and concerns, HHI released full-page ads in local newspapers in Ulsan on Monday that contain a statement from us.”
The official of the firm said the merger process will not be concluded within 2019 as there are many hurdles to overcome.
“The split-up plan is only the first step in a lengthy merger process,” the HHI spokesman said. “We have to get approval from the Fair Trade Commission here and still have to win approvals from antitrust regulatory bodies in other countries including the European Union, China, Japan and so on.”
After the merger plan was announced, HHI has been criticized by local residents in Ulsan who fear losing their jobs.
Ka Sam-hyun, one of the co-CEOs of HHI, forecasted the merger process will be completed in 2020.
“Before applying for the approvals of the merger from antitrust agencies here and abroad, we are now in preliminary discussions. We expect the evaluation process will be done next year,” Ka told reporters Monday when asked about the progress of the merger.