Hanwha Ocean to Pay Subcontractors Same Bonus Rate as Regular Workers

Hanwha Ocean (042660.KS) announced it will pay performance bonuses to subcontracted workers at the same rate as regular employees for bonuses scheduled to be distributed next year. Geoje Mayor Byun Kwang-yong called the decision "a first step toward coexistence."

Mayor Byun welcomed the decision on January 16, calling it "a magnanimous and responsible decision that demonstrates the value of coexistence through action."

"Even during the shipbuilding boom, the benefits have not been evenly distributed to the region and across the industry," Byun said in a statement. "A social consensus has been spreading that coexistence between companies and regions, and between primary contractors and subcontractors, is necessary."

He added that "Hanwha Ocean's decision will be a first step toward promoting stability and restoring trust across the shipbuilding industry ecosystem, going beyond past limitations."

"This is expected to not only boost morale among field workers but also bring positive ripple effects to the regional economy as a whole," Byun said.

The city of Geoje is exploring various policy solutions to spread the benefits of the shipbuilding industry to the region, including reducing quotas for foreign workers, expanding regular employment of domestic workers, enacting a basic law for the shipbuilding industry, and establishing a model for nurturing local talent.

"I hope Hanwha Ocean's decision will serve as a meaningful starting point for reestablishing the direction of coexistence and cooperation," Byun said. "I will continue to work to ensure that a stable coexistence structure between the shipbuilding industry and the region takes root."

Hanwha Ocean decided to match subcontracted workers' bonuses with those of regular employees. Last year, regular workers received bonuses equivalent to 150% of their base salary, while subcontracted workers received approximately 75%, about half that amount.

Under this measure, approximately 15,000 subcontracted workers will receive bonuses at the same rate as regular employees.

"Skilled domestic workers have left due to compensation issues, and foreign workers have been filling those vacancies," a Hanwha Ocean official said. "We expect the bonus increase will lead to higher preference for employment among domestic workers."

The Korean Metal Workers' Union Geoje-Tongyeong-Goseong Shipbuilding Subcontractors Branch and the Geoje Chamber of Commerce and Industry both expressed support for the decision, representing welcome from both labor and business sectors.