South Korean media reported that subcontracted workers working in Ulsan HD Hyundai Heavy Industries and Hyundai Mipo Shipbuilding will receive a "rebate" of 8 million won (about 43,120 yuan) if they pay 2 million won (about 10,780 yuan) to relevant institutions in installments within two years.
The city of Ulsan, South Korea, announced on Tuesday (January 30) that it has been selected for the "Shipbuilding Industry Employee Wish Reduction Program" implemented by the Ministry of Employment and Labor. The project is based on the "Win-Win Agreement on Improving the Dual Structure of the Shipbuilding Labor Market" signed in February 2023 by the Ministry of Employment and Labor, the City of Ulsan, South Korea, and major Korean shipbuilders (HD Hyundai Heavy Industries, Hanwha Marine, Samsung Heavy Industries, Hyundai Mipo Shipbuilding, Hyundai Samho Heavy Industries) and subcontractors, and is the first project to be implemented in 2024 under the "Win-Win Agreement".
The project is being implemented by the Ulsan Institute of Economic and Employment Promotion. Specifically, South Korea**, local governments, subcontractors, and workers will each pay 2 million won over a two-year period, and at the end of the two-year period, workers will receive 8 million won equivalent to four times the principal amount paid by the individual. This means:South Korea**,Local governments and subcontractors will provide 6 million won (about 32,238 yuan) in subsidies to subcontractor workers over two years
The aim is to reduce the turnover rate of subcontractor employees and increase technical proficiency by increasing the actual wages of subcontractors, so that they can work in the shipbuilding industry for a long time. Subcontractors from Ulsan HD Hyundai Heavy Industries and Hyundai Mipo Shipbuilding are the main targets of the project, with a total of 9,280 people.
The project period is from 2024 to 2026, with a total investment of 37.1 billion won (about 200 million yuan), of which ** local governments will contribute 185600 million won (about 100 million yuan). The project budget for 2024 is 94100 million won (about 50.72 million yuan), of which 49 percent is contributed at the national level500 million won (about 26.68 million yuan), 44600 million won (about 24.04 million yuan).
The Ulsan Economic and Employment Promotion Agency will accept and screen applicants from March to May 2024. The project period will commence in July 2024 and the payment period will be from July 2024 to June 2026.
There are no restrictions on age or place of residence, and workers who have signed an indefinite-term labor contract and purchased employment insurance before December 31, 2023 are eligible to apply. Labor dispatch companies, outsourcing companies, contractors, companies that do not have employment insurance, and companies participating in the "Youth Tomorrow Chaeum Credit" or "Shipbuilding Industry Tomorrow Chaeum Credit" are excluded.
Ulsan City** said, "Through the 'Shipbuilding Industry Employee Hope Mutual Aid Project', we aim to maintain the competitiveness of the world's No. 1 shipbuilding industry while improving production efficiency." South Korea's Ministry of Employment and Labor said: "This move can help shipyards retain front-line workers and alleviate the problem of labor difficulties." ”
Although the Korean shipyard is currently in good condition for receiving orders and has ensured the workload for at least the next three years, due to the gap between the original contractor and the subcontractor workers in terms of salary and working conditions, the Korean shipyard has always faced a dual structure problem, resulting in the employment of workers in the shipyard subcontractor has been in an unstable state and is facing a serious "manpower shortage". The ultimate goal of increasing the actual wages of subcontractor workers through the above-mentioned "regular deposit model" is to help shipyards retain labor and thus ensure delivery schedules.