News / CMA CGM South Korean staff strike over bonuses after bumper 2024 profit

© Mariusz Bugno

CMA CGM’s employees in its South Korea office have gone on strike for increments and bonuses, claiming the French line should be more generous after making bumper profits in 2024.

The French carrier achieved a $5.71bn net profit last year, up 57% from 2023, due to lengthened voyages caused by detours round the Cape of Good Hope amid the Red Sea crisis.

Its South Korean staff, represented by the National Office and Financial Services Labour Union, said salary increments should be commensurate with the company’s financial performance.

Prior to the strike that began this month, union leader Yoon Jae-woong said: “CMA CGM, the world’s third-largest shipping line, made over KRW8trn in net profit last year, but offers poor salaries and insincere negotiations.”

He added: “HMM employees had bonuses amounting to 700% of their monthly salary and Korea Line staff received a bonus of 1,000% of their monthly salaries.”

CMA CGM is said to have offered an increment of 4.5%, but this is less than the 5.9% the employees’ union requested.

The union also wants a bonus amounting to nine weeks of wages and an ex-gratia payment of $2,500, but CMA CGM purportedly offered a performance bonus and special bonus, each of one month’s salary. The company also reportedly offered a KRW250,000 ($180) ex-gratia payment.

The staff began industrial action after failing to reach agreement with CMA CGM, making them the first employees of a foreign shipping company in South Korea to do so. Ninety-six of CMA CGM’s 150 South Korean staff are unionised.

It is not uncommon for South Korean workers to strike, in 2021, South Korean flagship carrier HMM averted such action by agreeing to raise salaries by almost 8% and granting generous bonuses.

The unprecedented windfalls shipping lines have reaped, going back to Covid, have triggered unhappiness among employees who expected generous increments.

In 2022, Taiwanese line Yang Ming’s staff complained to local media when they felt under-compensated compared with their compatriots at Evergreen.

Meanwhile, a CMA CGM spokesperson told The Loadstar: “As every year, CMA CGM Korea has engaged in discussions with social partners and remains confident that a mutual understanding will be reached soon.”