Partial Strikes Begin at HD Hyundai’s Ulsan Yard as Contract Talks Stall
Contract talks in the yearly wage negotiations for unionized workers at HD Hyundai Heavy Industries’ shipbuilding operations have stalled, with the union set to start a partial strike on Wednesday. It is the fourth consecutive year that there has been a strike, as the company and its unions have a long history of contentious negotiations.
The Metal Workers’ Union Hyundai Heavy Industries branch is calling the partial strike, which will start on September 2 and involve portions of the labor force. It will last for 7 hours and be followed by nearly daily partial strikes rotating through the different areas of the operation. It will continue until September 10, with the union saying it has also scheduled a four-hour strike for all union members on September 15.
This year’s demands include a monthly base pay increase, as well as a 100 percent increase in bonuses, sharing at least 30 percent of the operating profits as performance-based rewards, and vacation allowances and other bonuses. The union argues that workers endured years of a prolonged industry downturn, and now deserve to share in the current shipbuilding boom.
The last time the company and its unions resolved the yearly contract negotiations without a strike was 2022, and before that it was 2013. Under Korean law, the unions have to file a labor dispute for mediation, which they did on August 14. Mediators met with both sides and reported they remained far apart. The unions reported on August 28 that two-thirds of members who had voted authorized a strike.
The company and the union representatives had already agreed to increase the pace of the negotiations in September. They are scheduled to hold sessions three times a week, increased from twice a week, and also talks with working-level negotiators. At this point, the union has not indicated if it would seek to enlarge the strike to other yards beyond Ulsan. Members at Mipo were also included in the strike authorization vote. The strike at the shipbuilding operation is proceeding as last-minute talks averted a strike at Hyundai Motors.
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It comes as investigators are also looking at the yard’s safety record. HD Hyundai reported that a worker had been unconscious at its boiler machinery operation, and the circumstances were under investigation. As is typical in Korea, a precautionary safety measure was started at the facility, suspending some work while the investigation proceeds. Reports indicate it was the sixth person to have died at the company’s facilities in 2026, including four at the Ulsan shipyard.
The company has reported a strong orderbook and work is progressing at high levels across the operations. It booked a new order on August 24 for four LPG carriers to be built at the Ulsan yard. HD Korea Shipbuilding & Offshore Engineering reported it has received orders for a total of 162 ships worth over $18 billion so far in 2026. This represents 77.6 percent of its annual order target of $23.31 billion.
