Over 200 foreign workers at HD HHI unionize after new contract reduces base pay
More than 200 workers employed by the shipbuilding giant HD Hyundai Heavy Industries (HHI) joined the Korea Metal Workers' Union following the introduction of the new compensation system that reduced base pay.
Directly employed foreign workers at HD Hyundai Heavy Industries hold a rally in Ulsan on June 17.YONHAP
More than 200 foreign workers employed by the shipbuilding giant HD Hyundai Heavy Industries (HHI) joined the country’s major labor union en masse following the introduction of the new compensation system that reduced base pay, the Korean Confederation of Trade Unions (KCTU) said on Wednesday.
The new union members — from countries including Sri Lanka, Vietnam and Nepal — are E-7-3 visa holders directly hired by HD HHI as general skilled workers. They carry out key shipbuilding operations such as welding, painting and pipe fitting.
“Around 200 foreign workers joined HD HHI’s chapter of the Korea Metal Workers’ Union under the KCTU recently,” the KCTU Ulsan branch and the metal workers’ union said.
Labor groups view this en masse unionization of foreign shipyard workers as highly unusual.
The move comes after HD HHI introduced a new compensation system in late May.
The shipbuilding company presented revised employment contracts to about 1,600 directly employed foreign workers. The proposal reduced monthly base pay by about 170,000 won to 200,000 won ($114 to $134); introduced a fixed allowance for 30 hours of overtime each month and a tiered compensation structure that rewards individual performance; and eliminated the monthly 210,000 won meal deduction by providing meals free of charge.
People hold a press conference to protest the employment contract for foreign workers at HD Hyundai Heavy Industries.KOREAN CONFEDERATION OF TRADE UNIONS
Many foreign workers pushed back against the new contracts, arguing that the reduction in base pay could lower overall pay despite the elimination of meal charges.
They later sought assistance from the Ulsan Migrant Center. Backed by the KCTU, the workers staged a series of rallies in downtown Ulsan.
In response, HD HHI revised the proposal.
Between June 30 and July 2, the company held briefing sessions with workers by nationality, after which it promised to provide breakfast, lunch and dinner free of charge to all directly employed foreign workers and refund meal expenses that had been deducted from their pay since January 2023. These retroactive reimbursements would average about 7 million won per worker, according to the company.
HD HHI also revised its performance bonus plan so that such bonuses would be distributed equally, regardless of personnel evaluations.
“Taken together, the elimination of meal deductions and the revised bonus system will provide foreign workers with more stable overall compensation and take-home pay than before,” a company representative said. “Thus, a considerable number of foreign workers have signed the new contracts.”
HD Hyundai Heavy Industries shipyardJOONGANG ILBO
The HD HHI branch of the Korea Metal Workers’ Union, however, insists that the new contracts should be withdrawn altogether, as some foreign workers reportedly signed them out of fear that their current contract would be terminated, forcing them to return to their home countries.
About 320 of the roughly 1,600 directly employed migrant workers admitted to “signing the company’s new contracts against their will,” according to the union.
The union also called on the Ministry of Employment and Labor to launch a special labor inspection.
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
