Hyundai Heavy Industry, HHI shipyard workers proposed a strike to demand higher wages

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South Korean shipbuilder Hyundai Heavy Industries (HHI) who recently won a NZD 493 million (USD 350 million) contract to build a naval tanker for the New Zealand Defence Force (NZDF) is been faced by a strike threat by its workers after a vote last Friday.

HHI being one of the South Korean “Big Three” shipbuilders struggling to attract new shipbuilding see 2016 has one of the toughest years. However, the management team had submitted its self-rescue plan in May and following an approval from its creditors, HHI said last month it intends to implement a USD 3.02 billion worth Management improvement plan by 2018 to cut excessive costs through the bulk purchase of components and materials and raise efficiency in production.

Despite the lingering financial crises been faced by the ship merchant giant due to lack of orders and debt incurred, the shipyard workers have decided to proposed a strike to demand higher wages and to oppose the company’s restructuring plans especially with regards to job layoffs.

The approval for the proposed strike, however, does not mean an immediate walkout by the workers, the labour union pointed out.

Since May this year, the HHI management and the labour union have held several rounds of negotiations but they have failed to narrow their differences.

Last month, the labour union opposed HHI’s plan to spin-off a business unit as part of its restructuring plan, as the move would lead to a loss of close to 1,000 jobs.