Reporter Ok Seung-wook = HMM management and the land and sea labor union signed the agreement dramatically at 8 a.m. on the 2nd after marathon negotiations in 2021.
In the wage negotiations that lasted from 2 p.m. to 8 a.m. on the 1st in Yeonji-dong, HMM CEO Bae Jae-hoon, Kim Jin-man, chairman of the land union, and Jeon Jeong-geun, chairman of the Haewon union, attended and signed the wage agreement.
Major agreements include wage increases of 7.9 percent, incentives of 650 percent, and welfare improvements of 2.7 percent on average. It will also make efforts to restore wage competitiveness and come up with a performance-based pay system by forming a TF in which labor and management will jointly.
The wage negotiations began on June 18 with the Korea Land Workers' Union and have been held with the Haewon union in July. The agreement was finally signed on the same day, ending 77 days later.
With the completion of wage negotiations, exporters can only now feel relieved. As labor and management have been at odds over the wage increase, some in the industry are concerned that the strike could become a reality. Some analysts say that if the union goes on strike for three weeks, the damage could reach 680 billion won.
In the wake of the conclusion of the wage negotiations, HMM's labor and management promised to strive for a new leap forward as a global top class shipping line.
A company official said, "We apologize for causing concern to the public that the prolonged negotiations could cause logistics chaos," adding, "Considering the difficult situation such as Korona and the impact of the shipping industry on the national economy, labor and management were able to make concessions one by one." "With this wage negotiation, labor and management will work together to complete the reconstruction of the shipping industry," he stressed.
Kim Jin-man, chairman of the Korea Land Workers' Union, said, "The agreement was not a satisfactory wage increase for the union members, but we could not wait and see the growing concerns over logistics chaos," adding, "Considering the difficult situation such as Corona 19 and the impact of the shipping industry on the national economy, labor and management were able to make concessions one step at a time."He added, "With this wage negotiation, the elderly and the elderly will work together to complete the reconstruction of the shipping industry."
Jeon Jeong-geun, chairman of the Haewon union, also said, "The sailors have been guarding the sea under the heavy burden of the shipping industry, which is responsible for 99.7 percent of Korea's export and import cargo," adding, "I hope the crew law will be revised for the better life of the sailors who are doing their best."
HMM Promises to Contribute to the National Economy through Statement
After concluding wage negotiations on July 2, HMM issued a statement saying, "We apologize to the public for causing concern and concern."He also did not forget to say that he will contribute to the national economy with a sense of responsibility as a national flag carrier in the future.
HMM said in a statement on the same day, "The labor and management reached a settlement today, 77 days after the wage negotiations, which began on June 18," adding, "There were many public concerns about the logistics crisis due to the prolonged wage negotiations, and I am sorry that this has caused a lot of concern."
HMM posted an operating profit of 980.8 billion won last year, turning into a surplus for the first time in 10 years. This year, the company achieved a record operating profit of 2.4082 trillion won in the second quarter. "We thank the government and creditors for their active support for HMM's management normalization and smooth settlement of wage negotiations under difficult circumstances," he said. "We have also made efforts by executives and employees to reduce costs and create results."
With the support of the government and creditors, HMM was able to build a total of 20 eco-friendly super-large container ships, including the world's 24,000 TEU-class supertankers, last year. They played a crucial role in joining the "THE Alliance," one of the world's top three shipping alliances. Securing such a super-large ship and joining the Alliance as a full member has served as the basis for HMM's leap forward.
HMM said, "Currently, the difficulties of exporting companies have increased due to lack of ship-to-ship and freight payments," adding, "We sincerely apologize for causing anxiety to shippers due to prolonged wage negotiations." He also stressed that labor and management will work together to ensure that export cargo is transported without a hitch.
HMM has formed a TF involving labor and management to enhance wage competitiveness and establish a rational performance culture. It will also come up with a performance-based pay system and a three-year wage adjustment plan.
"If labor and management agree on a plan drawn from the TF, we will replace the three-year wage group negotiations," HMM said. "We will do our best to create a cooperative labor-management culture in the future." "In the future, HMM will join forces with labor and management to become a company that contributes to the local community and the national economy, including the people, creditors, stakeholders and shippers, with a sense of responsibility as a national flag carrier," he added.
A series of welcoming announcements from the shipping and trade associations
The Korea Shipping Association issued a statement welcoming HMM's labor and management's final conclusion of wage negotiations earlier in the day after overnight negotiations.
"The two sides of HMM's labor and management have come up with a surprise agreement, recognizing the current difficult internal and external situation with Corona 19 and the public's concerns watching it," the association said in a statement. "As a result, we will be able to fulfill our original duties for export-import companies and the national economy."
Kim Young-moo, vice president of the Korea Shipping Association, also said, "We thank both HMM labor and management for reaching an agreement on a grand scale to overcome the shipping and logistics crisis," adding, "We will also do our best to contribute to the national economy by realizing our leap forward as a leading country in the shipping industry and by supporting export and export logistics."
The Korea International Trade Association also said in a commentary that day, "We greatly welcome the news of HMM's smooth wage deal that was announced on behalf of the trade industry this morning. The conclusion of the negotiations has helped small and medium-sized exporters regain their will and confidence to overcome the export and import logistics crisis."
"As companies watched the wage negotiation process, which has been somewhat unstable over the past few months, they were worried that the difficulties in import and export logistics would increase," he said. "We are confident that the settlement will greatly contribute to the creation of a win-win atmosphere in which ship owners and shippers join forces to overcome the crisis."
"We express our gratitude on behalf of both labor and management for their efforts based on mutual understanding and concessions," the association said. "We expect HMM to overcome the current logistics turmoil with our trading industry and take the lead in reviving the economy through exports."
HMM's labor and management reached a wage and collective agreement in 77 days."Sorry to trouble you, future contributions to the national economy."
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