Hyundai Heavy Industries to face strike, an obstacle to restructuring

Hyundai Heavy Industries (HHI) is expected to face resistance from union members amid its battle to normalize management, suggesting another hurdle in its tough restructuring program.

Unionized workers of HHI said Friday that they have decided to stage a walkout, claiming that the company did “not sincerely cooperate with workers in this year’s wage negotiations.” But experts say that the workers’ intention is to oppose the shipbuilder’s latest self-rescue plan which they say will result in massive layoffs.

“HHI, which is said to have the strongest finances of the three biggest shipbuilders, is pushing the toughest plans,” union head Baek Hyung-rok said Wednesday. “The despair of laborers in the area is turning to rage.”

Hundreds of unionized shipyard workers held a massive rally at the company headquarters in Ulsan, South Gyeongsang Province, Thursday. Also, the union representatives said they will request labor-management dispute settlements with the National Labor Relations Commission next week.

The unionists’ walkout is the third of its kind in the last three years.

Representatives of the union also participated in a meeting with the Hyundai Motor union Thursday, suggesting a “collective struggle” against management and the government.

Such moves by unionized workers are expected to face strong opposition from the public due to the shipbuilder’s embattled efforts for management normalization.

“It is regrettable that the unionized workers have decided to stage a rally regardless of the company’s situation. If they persist in staging a walkout, creditors may halt ongoing efforts to salvage the firm,” said a market analyst.

“They are one of the most highly paid worker groups in the country. Staging a massive rally when the company is struggling to stay afloat is just a selfish decision.”

Unionized workers of neighboring shipbuilder Hanjin Heavy Industries recently decided to entrust this year’s wage negotiations and employment rules to the company.

“There won’t be any workers without the company,” said union head Kim Ui-wook. “We have decided to work together with management to overcome the current difficulties.”

HHI announced a self-rescuing plan that includes asset sales and a cut in the workforce to save 3.5 trillion won. Under the shipbuilder’s self-rescue plans, temporarily approved by its creditors and led by KEB-Hana Bank, it will sell stock investments, non-core assets and cut its workforce, which will reduce its debt-to-equity ratio to below 100 percent by 2018.

Daewoo Shipbuilding & Marine Engineering (DSME) decided on a similar path, but also faces strong opposition from its unionized workers.
Source: Korea Times