An HMM container vessel. (Photo: HMM)

 

 

[Alpha Biz= Paul Lee] The labor union of HMM, South Korea’s largest container shipping line, has strongly opposed the government-backed plan to relocate the company’s headquarters to Busan, warning of legal action and a potential general strike.

On March 3, HMM’s land-based labor union stated that it “firmly opposes the push to relocate the headquarters for political purposes rather than corporate sustainability,” adding that it is preparing both legal measures and a resolution for a full-scale strike.

The union claimed that the company’s major shareholders are expected to appoint three favorable outside directors at this month’s shareholders’ meeting, paving the way for the relocation. It projected that the board of directors could approve an amendment to the articles of incorporation in April to change the company’s registered headquarters, with final confirmation likely at an extraordinary shareholders’ meeting in May.

The union warned that if the amendment is passed during ongoing labor-management negotiations, it will file breach-of-trust charges against the directors and seek an injunction to suspend the effectiveness of the shareholders’ resolution or block the relocation.

The labor group plans to hold weekly morning rallies and a general strike resolution rally in front of Cheong Wa Dae Sarangchae on April 2.

The Ministry of Oceans and Fisheries and other government bodies are promoting the relocation of HMM’s headquarters to Busan as part of a broader national policy initiative. President Lee Jae-myung recently reiterated via social media that, following the planned relocation of the ministry and the establishment of a maritime court and a southeastern investment corporation, “HMM’s relocation will also be pursued.”

As of the end of September last year, the company’s largest shareholder, Korea Development Bank, held a 35.42% stake, while Korea Ocean Business Corporation owned 35.08%.

 

 

 

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