Hyundai Heavy Industries and Mipo Shipyard to Hire Regular Employees for the First Time in 7 Years... Recruitment Next Year

Ministry of Employment, Ulsan City, and Dong-gu Sign 'Job Agreement'... Direct Employment Transition for Partner Company Workers
Introduction of 'Shipbuilding Tomorrow Filling Deduction'... Support for Housing and Settlement Expenses

Goliath Crane at Hyundai Heavy Industries, Dong-gu, Ulsan. (Image source=Yonhap News)

[Sejong=Asia Economy Reporter Moon Chaeseok] Riding on the recovery trend in the shipbuilding industry, Hyundai Heavy Industries and Hyundai Mipo Dockyard have decided to hire regular employees next year for the first time in seven years.

The Ministry of Employment and Labor, Ulsan City, Dong-gu District of Ulsan, Hyundai Heavy Industries, and the Hyundai Heavy Industries & Mipo Dockyard In-house Partner Companies Association will sign a "Shipbuilding Industry Job Win-Win Agreement" on the 10th at Hyundai Heavy Industries headquarters in Dong-gu, Ulsan. The agreement includes resuming regular employee recruitment and converting partner company workers to direct employment, which had been suspended since 2015. The timing and scale have not been disclosed. However, a Ministry of Employment and Labor official explained, "We received a firm commitment that recruitment will proceed next year, so it was reflected in the agreement."

Along with shipbuilding companies starting new recruitment, the Ministry of Employment and Labor and Ulsan City will introduce the "Shipbuilding Industry Tomorrow Savings Program" to help new hires in the shipbuilding industry accumulate a lump sum. The program is expected to cover all new employees in the shipbuilding industry, including Hyundai Heavy Industries and Hyundai Mipo Dockyard, with detailed plans to be announced next week.

Ulsan City and Dong-gu District will support housing and settlement expenses for young and newly employed workers in the shipbuilding industry. Dong-gu will also support employers with subsidies for maintaining employment in local shipbuilding companies.

The Ministry of Employment and Labor, Ulsan City, and Dong-gu District have agreed to expand the training incentive support for shipbuilding industry trainees to up to 1 million KRW per person per month. The youth employment incentive will also be increased by adding 10% of Ulsan City’s budget on top of the government support.

Hyundai Heavy Industries and Hyundai Mipo Dockyard announced that they will raise the delivery prices to partner companies to an appropriate level, reflecting inflation and increases in the four major social insurance premiums. They will also expand the scale of management stabilization funds and win-win development funds for partner companies.

With the shipbuilding industry designated as a special employment support sector, the Ministry of Employment and Labor plans to revise the system to allow companies to pay deferred employment and industrial accident insurance premiums in installments over three years. Ulsan City will increase the shipbuilding industry management stabilization fund (20 billion KRW) and special guarantee fund (7.5 billion KRW).

Hyundai Heavy Industries, Hyundai Mipo Dockyard, and their partner companies promised to improve worker treatment and welfare, including promoting wage increases for partner company workers. Employment Minister An Kyung-duk said, "The decision by Hyundai Heavy Industries and Hyundai Mipo Dockyard to resume regular employee recruitment is very encouraging not only for the region but also nationally," and urged, "Other shipbuilding companies should actively consider expanding new recruitment."