South Korean employees of French container shipping company CMA CGM have been on strike since the beginning of the month, demanding pay rises and bonuses following the company posted high profits in 2024.
CMA CGM closed 2024 with a net profit of $5.71 billion, an increase of 57% compared to 2023. This jump is due to the increased demand for TEU miles caused by detour around the Cape of Good Hope in the wake of the Red Sea crisis.
Employees of the shipping company in South Korea, represented by the National Union and the Financial Services Union, stated that salary increases should be proportionate to CMA CGM’s financial performance.
“CMA CGM, the third largest shipping company in the world, made a net profit of over KRW 8 trillion last year, but offers low salaries and dishonest negotiations,” union leader Yoon Jae-woong said at a press conference in June, before the strike began. “HMM employees received bonuses of 700% of their monthly salary, while Korea Line Corporation employees received a bonus of 1,000% of their monthly salary.”
Union demands 5.9% wage increase
According to reports, CMA CGM offered a 4.5% pay rise, which is less than the 5.9% demanded by the union. The union also demanded a bonus equivalent to nine weeks’ pay and a one-off payment of $2,500, but CMA CGM countered with a performance bonus and a special bonus, each equivalent to one month’s pay. The world’s third largest liner operator also reportedly offered a voluntary payment of KRW 250,000 ($180).
The employees went on strike after failing to reach an agreement with CMA CGM. This made them the first employees of a foreign shipping company in South Korea to do so. 96 of CMA CGM’s 150 South Korean employees are unionized. The industrial action provides for short-time working.
It is not uncommon for South Korean workers to take industrial action, as unions are not afraid to show their dissatisfaction with employers.
The historic profit made by shipping companies since the Covid-19 pandemic has led to frustration among workers who had expected generous pay rises. In 2021, South Korean shipping company HMM avoided industrial action by agreeing to a pay rise of almost 8% and generous bonuses.
A CMA CGM spokesperson told HANSA: “As every year, CMA CGM Korea has been in talks with the social partners and is confident to reach an agreement soon.”
