More Than Half of HMM Seafarers Resign Amid Pay Negotiations

Over three hundred (317) seafarers, working with HMM have quit, after the South Korean shipping giant failed to meet with their pay demands, reveals HMM’s union. The number is alarming, as the company employs approximately six hundred seafarers worldwide, which suggests that half of it’s total workforce has resigned.

More Than Half of HMM Seafarers Resign Amid Pay Negotiations
Image For Representational Purposes Only | Via: BBC

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More than 90% of the company’s seafarers have threatened mass resignation and pay strikes, as reported by marinemonks yesterday.

This is primarily due to the fact that the company’s seafaring and shore-based staff are largely dissatisfied over “a meagre” rise in their salary, despite the company achieving record profits last year, thanks to tight shipping capacity and logistics disturbances caused by the COVID-19 pandemic and port congestions around the world.

The union demands a 25% increment in the wages of seafarers, and bonuses equivalent to 1,200% of their salaries, while all that HMM is offering, is a mere 8% increment, a bonus of 300% of their salaries and a productivity incentive which equals to 200% of the wages.

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“We don’t want our request to be misunderstood as asking for more money, but our dedication to the company hasn’t been recognised,” said the union.

It is being reported that the negotiations are being continued from both the sides, to prevent unforeseen circumstances from arising. Shipping experts estimate a loss of $580 million for HMM, if the union goes ahead with the strike. Contingency plans are being prepared by terminal operators in Busan, for moving cargo, if the port gets hit with the planned strike, with the terminals catering for THE Alliance (which has HMM as a member) being specifically vulnerable.

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