[SME Regulation Site⑥] Entire Shipyard Stops Due to One Accident

[Planning] Visiting the Site of SME Regulations
"Work Suspension Orders Excessive in Major Accidents"

A view of a shipyard in Geoje

[Asia Economy Reporter Kim Cheol-hyun] "It is too excessive." This is what Park Jae-sung, CEO of Seonghae Industry, repeatedly said. He was referring to the work stoppage orders issued by the Ministry of Employment and Labor when a serious accident occurs. There is an actual case. Last May, a fatal serious accident occurred at a shipyard in Geoje, Gyeongnam, where Seonghae Industry is a subcontractor. This shipyard has seven docks where 3 to 4 ships are built simultaneously, and the accident happened on one of the three ships being built at Dock 3. However, the work stoppage order was issued for all seven docks, and the entire shipyard came to a halt. The damages included not only losses from production suspension but also worsening management of subcontractors due to prolonged shutdowns and livelihood issues for hourly wage workers. While the industry agrees on the need for investigations and work stoppages to prevent recurrence of serious accidents, there are calls for careful review regarding the scope of such orders.

According to related industries on the 16th, under the current Industrial Safety and Health Act, if a serious accident occurs in a workplace or if it is judged that there is a risk of industrial accidents recurring in the same workplace, a work stoppage order is issued. When a serious accident occurs, a labor inspector visits the site to confirm and then implements the work stoppage order for safety.

The problem arises in large-scale workplaces like shipyards. Even if an accident occurs on one ship at one dock, other docks performing the same work may also be ordered to stop work. Ships being built at locations unrelated to the accident and far away are also prevented from continuing construction. CEO Park said, "Work is stopped even in places more than 1.5 km away from the dock where the accident occurred."

Once work is stopped, it takes a considerable amount of time to lift the order. After the company implements safety measures and applies for lifting, a review is conducted to decide whether to lift the order. In the case of the work stoppage at the Geoje shipyard last May, it took more than two weeks to lift the order. CEO Park said, "It takes a lot of administrative time before the order is lifted."

During the work stoppage period, subcontractors and employees who have nothing to do with the accident must bear the damage. Even in cases of partial work stoppage, the entire process may stop due to the impact of some work being halted. Subcontractor employees receive only suspension pay, and daily workers may not receive even that. CEO Park lamented, "Many people working at shipyards are hourly wage workers, so if they cannot work, they do not get paid. The longer the work stoppage period, the more it becomes a livelihood issue. It is unfair."

The industry has suggested minimizing the scope of work stoppage orders considering such damages. They argue that only the affected area should be investigated and countermeasures established when an accident occurs. CEO Park emphasized, "Work stoppage for serious accident investigations is necessary, but the area and duration should be minimized."