HD Hyundai Heavy Industries' union voted down a record tentative wage package on Sept. 2, with 52.14% of 7,541 participating members rejecting an agreement worth an average of 40.56 million won ($30,129) per worker.

The deal included a 120,000 won ($89) base pay rise and an 11 million won ($8,170) lump-sum payment. Management called it "the highest-level package in the shipbuilding industry" and said it would "seek a solution with an eye toward sustainable long-term competitiveness."

Why did the record package fail?

HD Hyundai Heavy's operating profit is expected to roughly double year-on-year, and the union is pressing for a 30% share of operating profit as part of any revised agreement. The 52% rejection margin is narrower than last year's 60%-plus vote against the first tentative deal — a rejection that preceded two additional months of talks and a full strike before resolution.

What happens next at HD Hyundai Heavy?

The union plans to gather members' opinions before formally requesting renegotiation with management. Leaders have kept open the possibility of a full strike, originally announced for after the Chuseok holiday, and a joint walkout with Hanwha Ocean's organized workforce. Observers note the smaller rejection margin and the absence of an immediate strike call raise the prospect of a second tentative agreement relatively quickly.

What changed for Hanwha Ocean?

Separately, the 13th Administrative Division of the Seoul Administrative Court rejected Hanwha Ocean's application for a stay of execution on a corrective order from the National Labor Relations Commission. The court held that Hanwha Ocean must engage in collective bargaining with Welliv, a subcontractor responsible for in-house welfare and facilities management.

The court reasoned that the bargaining obligation does not mean the company must unconditionally accept the union's demands, and therefore concluded that Hanwha Ocean would not suffer irreparable harm. The labor commission had earlier determined that Hanwha Ocean exercises substantial control over the agenda items sought by the Welliv union branch — including upgrades to aging kitchen facilities and commuter buses.

How are the Welliv talks proceeding?

Hanwha Ocean said it would proceed with negotiations in line with the court's ruling. The Korean Metal Workers' Union urged the primary contractor to fulfill its responsibilities immediately. Daily talks have continued since the Chuseok holiday, but the Welliv branch's high-altitude protest and the expanded scope of subjects suggest a first tentative agreement will take time. A final ruling on the merits of Hanwha Ocean's challenge remains pending.

What is the broader outlook?

Two of South Korea's largest shipbuilders are simultaneously navigating rejected deals, expanded bargaining obligations and the threat of coordinated strike action. The trajectory of South Korean shipbuilding labor costs through year-end will hinge on whether the HD Hyundai renegotiation and the Hanwha–Welliv talks produce parallel local settlements or harden into a national confrontation.