2003-09-23 09:19

Pan Ocean Shipping encounters labor union troubles

The largest domestic bulk carrier, Pan Ocean Shipping Co, Ltd., is facing ruin because of failures in wage negotiations between labor and management over the last three months.
According to Pan Ocean Shipping, the land transportation labor union of the company opened a general meeting to vote on the pros and cons of actions taken in a labor dispute September 8; 70% of members approved. As a result, workers went on strike from September 16.
Hanjin Shipping, Hyundai Merchant Marine, and other shipping companies hiked wages increase an impressive 9.3~15% this year despite depressed business last year.
But Pan Ocean Shipping only increased wages by 6.4% because of reduced business this year, although the company recorded about 27 billion won in business profits last year. Hence, the difficulties in negotiations between labor and management.
Since coming out of receivership and regaining legal control of the company last year, management has driven Pan Ocean Shipping into the ground in the eyes the labor union, which cited their lack of vision and failure to adequately compensate their workers as a couple reasons.
The strike is expected to lower international confidence in Korea as well as cause monetary losses for Pan Ocean Shipping.
Conversely, Pan Ocean Shipping has recorded sustained profits after regaining legal control, although employment at the company was downsized by about 20%. The company has attracted a great deal of public attention after emerging from 9 years of receivership last year.
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