Recently, employees at the South Korea office of CMA CGM, the world’s third-largest shipping company, initiated a strike demanding higher wages and bonuses. The strike stems from employee dissatisfaction with compensation, as they believe the company’s profit growth has not been matched by corresponding salary increases.

CMA CGM ranks third globally, reporting a net profit of $5.7 billion and revenues of $55.5 billion in 2024, largely boosted by extended shipping routes around the Cape of Good Hope during the Red Sea crisis. However, the company’s proposed wage increase falls short of union demands, and there are significant differences between the company’s bonus structure and the union’s expectations for wages, bonuses, and allowances.

At a press conference held on June 25, the Korean union accused the French shipping giant’s South Korea branch of dishonesty during recent wage negotiations. The union criticized the company for paying Korean employees wages that do not reflect its global standing.

The union is calling for CMA CGM Korea to raise wages and ensure fair compensation comparable to industry peers. Currently, the average wage of CMA CGM Korea employees is 35% lower than that of Hyundai Merchant Marine (HMM), South Korea’s seventh-largest shipping company.

Union chairman Yoon Jae-Woong stated, “Despite CMA CGM’s global success, Korean employees’ wages are significantly lower than those of peers with similar skills and experience. The lack of fair pay and appropriate channels for dialogue has led many skilled workers to leave. We urge CMA CGM to acknowledge this reality and take concrete steps to improve conditions.”

The union was established in 2022 with support from the Korean Federation of Service Workers’ Unions (KFSWU) and is the first enterprise union formed by a foreign shipping company in South Korea. It is the country’s second shipping industry union after Hyundai Merchant Marine.