HMM labor union may decide to go on a strike if state mediation fails in August
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HMM union will decide on strike details if the state committee deems the terms of difference are too great for state interference.
The commission is due to inform its decision on Aug. 19.
On Tuesday, HMM shares lost 2.7 percent to end at 37,600 won ($32.71).
Mediation process typically takes 10 days but it can be extended by another 10 days upon agreement by relevant parties. HMM’s management asked for an extension for more time to persuade creditors.,
The onshore workers filed for mediation on July 30.
HMM’s labor union and management will have meetings under the supervision of the Labor Relations Commission to reach an agreement on their wage negotiation. They are expected to have two meetings – one around Aug 9 and another one on either Aug 12 or 13, said a source with knowledge of the situation.
The labor is not insisting on the 25-percent hike in the wage but asking the management to make a reasonable compensation as the workers have been left out from the company’s celebration of the big earnings turnaround when all had contributed to weather the long slump, said the union.
The management has proposed to raise the salary by 5.5 percent.
HMM’s sailors will separately file for mediation. Both onshore and offshore could enter a strike if separate negotiations with the management do not go well.
Shipping disruption could bode badly for the export-reliant country as companies have been struggling with shipments due to a shortage of carriers amid overwhelming global demand. Moreover, the strike could fall ahead of the year-end peak shopping season.
The shipper has frozen wages for eight consecutive years since 2011. It has been made the flag sea carrier through state-led bailout in place of bankrupt Hanjin Shipping. The management cannot easily indulge its employees as it remains a de facto nationalized entity under state lender Korea Development Bank.
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