The labor union pointed out that the company had agreed three years ago not to threaten job security of the union members at home by operating overseas facilities. The union says the management is clearly acting against the collective agreement.

Out of fears that the establishment of overseas facility could have a negative effect on the job security at home, the labor union had asked the company to agree upon the special collective bargaining. So the agreement was concluded when the company was building the Subic Shipyard in the Philippines in 2006.

However, HHIC management has recently decided to build the two 180,000-dwt bulkers ordered by Taiwan’s Hsin Chien Marine for $60m each a few days ago, at the Subic Shipyard. The contract marks the first order for the shipbuilding company in 16 months.

The union argued that the company deployed the new order to the Philippines Subic Shipyard without discussions with the union members and is just pushing ahead with the layoff program illegally, against the previous agreement that it would seek to secure three-year long orderbook for its domestic facility and would not conduct restructuring ‘artificially’.

One union member even said, “I have doubts whether the company is attempting to procrastinate receiving orders for domestic facility on purpose in order to sack the workers at home.”

However, the management explained that the contract price for capesize newbuildings should be more than $80m each to be profitable at domestic yard.But the recent orders were never profitable at home and had to be sent to the Philippines, it said.The company added the capital-union agreement made three years ago was based on the situation of boom years and now is very different from those days.

Meanwhile, the Korean Metal Union’s shipbuilding division resolved on responding strongly to the company’s workforce restructuring. It plans to hold a large-scale rally in Busan city in Korea around January 20th.

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