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HMM given until 1 September to settle labour dispute – More than half company’s seafarers to move to MSC

HMM’s seafaring union has given the management a week’s grace to see if a compromise to the impasse in their salary increment expectations can be reached.

This is even as more than half of the flagship South Korean liner operator’s offshore manpower have tendered their resignations to the union. Of HMM’s approximate 600 seafarers, 317 have resigned and are inclined to take up employment with MSC, which is offering a salary that is 2.5 times higher than what the South Korean operator is paying.

The seafarers were planning to quit en masse after voting on 22 August to strike, but after giving HMM’s management until 1 September to renegotiate, the union is withholding the collective resignation.

The union said on 25 August, “We don’t want to be misunderstood as asking for more money, but our dedication to the company hasn’t been recognised. The ship is the only workplace where you can’t go to a hospital even if you fall sick. Every month, we put in 313 hours of labour and we can’t get to a hospital even when a disaster occurs.”

HMM’s seafarers are not alone in disagreeing with the management about their salary expectations. Shore-based employees, like their seagoing counterparts, are also demanding that salaries be raised by 25%.

When talks between the management and their staff broke down, the government’s Central Labor Relations Committee attempted to mediate, but failed.

In Busan port, terminal operators catering for THE Alliance, of which HMM is a part, are watching the situation as chaos would occur if the company’s operations are disrupted.

The impact on Busan will be severe, as it is South Korea’s busiest container port and north-east Asia’s biggest transshipment hub.

Terminals in Busan New Port Piers 1, 3 and 4, have a service contract with THE Alliance.

Yonhap News quoted one terminal operator as saying: “The most worrying thing is that an HMM ship entering the port could become inoperable once the crew gets off.”

HMM Promise arrived at Busan New Port on 24 August and the 11,000TEU ship left for Long Beach the following day, but other HMM vessels are due over the next three days.

Busan Regional Office of Oceans and Fisheries and Busan Port Authority are coming up with contingency plans should HMM’s seafarers go on strike.

Martina Li
Asia Correspondent





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