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Foreign workers flex rare collective clout at HD Hyundai over 'unfair' contract
Foreign workers at HD Hyundai Heavy Industries' Ulsan shipyard speak at a rally held by the Korean Metal Workers' Union in front of Ulsan City Hall, Wednesday. Yonhap
By Park Ung
320 workers at Ulsan shipyard claim they were forced to sign flawed contracts
About 200 foreign workers at HD Hyundai Heavy Industries' (HHI) Ulsan shipyard joined a labor union in a rare collective move this month, after the company allegedly forced unfair labor contracts.
The dispute is one of the largest labor actions by foreign workers in Korea, drawing international solidarity and exposing how workers' ability to raise concerns can differ depending on whether they are directly employed by a company or by its subcontractors.
The collective union membership came in response to HHI's new wage system, which the company demanded workers sign in May.
The system cuts base pay by 170,000 won ($114) to 200,000 won and introduces a fixed overtime allowance based on 30 hours of monthly overtime, along with a performance-based pay scale. It also makes meals, previously deducted from workers' pay, free of charge.
The Korean Metal Workers' Union (KMWU) said the new contract was deeply flawed and that workers were coerced into signing it through threats of contract non-renewal and being unable to find jobs at other companies. About 320 of the roughly 1,600 foreign workers directly employed by the company have signed a document testifying that they had been forced to sign the new contract.
“It is rare in Korea for foreign workers to join a union collectively. This is an unusual case,” Kim Han-ju, a spokesperson for the KMWU, told The Korea Times, adding that anger has been spreading among the workers.
Foreign workers at HD Hyundai Heavy Industries' Ulsan shipyard rally in protest of a wage system overhaul in Dong District, Ulsan, June 17. Yonhap
Kim Hyun-joo, head of the Ulsan Migrant Center, said at a press conference Tuesday that meal cost deductions had disappeared, but the new pay system is unfair because pay falls the more employees work. As base pay dropped, she said, the standard hourly wage used to calculate overtime, night and holiday pay dropped with it.
When contacted by The Korea Times for comment, HHI said the wage overhaul was meant to support workers' long-term employment and stable settlement in the region as part of broader improvements to overall treatment, including meals and housing.
Protest rallies have grown from 170 workers at the first rally in June to about 1,000 people earlier this month, calling for withdrawal of the contract, and an end to the pay cut and discriminatory treatment.
HHI responded this month with a set of changes for directly employed foreign workers. The company said it would stop deducting meal costs regardless of whether workers signed the new contract, refund meal deductions taken since January 2023 and introduce a new bonus system unrelated to performance evaluations.
The fight has also drawn international attention. The International Trade Union Confederation, which represents 191 million workers in 169 countries, has taken particular note of the workers' fight and formally declared its solidarity.
Kim Han-ju said issues have so far centered on workers directly employed by HHI, but the union believes subcontractors face similar problems and is looking into them.
“Subcontractors are fragmented across many companies, making it harder for problems to surface,” Kim said. “Workers directly employed by a company have more channels to raise concerns. Subcontracted workers, however, face greater job insecurity and a higher risk of retaliation, which keeps them from speaking up. That does not mean there are no problems.”
The KMWU also pointed to the government's failure to address the problem.
“The Lee Jae Myung administration and Ulsan Metropolitan City must fulfill their duty to ensure foreign workers' labor conditions are guaranteed without discrimination,” the union said, adding that it would continue standing with foreign workers to secure their rights and push for safe, dignified workplaces.