Supporting the Resolution of Labor Shortages through Customized Support for the Shipbuilding Industry
[Asia Economy Yeongnam Reporting Headquarters Reporter Song Jong-gu] Changwon Special City in Gyeongnam announced on the 22nd that it has been selected for the Ministry of Employment and Labor's new public offering project, the ‘Regional Plus Job Project (Shipbuilding Industry),’ by forming a consortium with Gyeongnam Province, Geoje City, Tongyeong City, and Goseong County.
The ‘Regional Plus Job Project’ is a job project that preferentially supports workers and companies by relaxing support conditions or raising support levels in connection with existing central government job projects to improve the recruitment difficulties of local key industries. On December 13 last year, the Ministry of Employment and Labor designated shipbuilding, root industries, semiconductor industries, and agriculture as supported industries and announced the public offering project.
The city is participating in the Gyeongsangnam-do consortium and is making thorough preparations for the public offering project, including practical consultations, listening to corporate opinions, and conducting demand surveys for preferred job projects. After submitting the project proposal and undergoing evaluation, shipbuilding was finally selected as the supported industry.
Following the selection of this public offering project, 7.8 billion KRW of national funds will be invested over the next year to support the resolution of recruitment difficulties in the shipbuilding industry in four cities and counties, including Changwon.
The shipbuilding industry has been recovering from a long slump, securing orders for 2 to 3 years starting from 2021 due to increased orders, but it is suffering from severe recruitment difficulties due to low wages compared to labor intensity, raising concerns about whether the past order performance can lead to timely production.
Accordingly, through the Plus Job Project, the city plans to support the resolution of recruitment difficulties in the shipbuilding industry by implementing ▲ Shipbuilding Industry Tomorrow Savings Program ▲ Training Allowance Payment for Prospective Employees ▲ Shipbuilding Industry Job Leap Incentive ▲ Reemployment Support Project for Skilled Retirees.
First, under the Shipbuilding Industry Tomorrow Savings Program, if a new worker deposits 1.5 million KRW (125,000 KRW per month) over one year, at the end of the one-year term, an additional support fund of 4.5 million KRW will be added, paying a total of 6 million KRW plus agreed interest.
Also, trainees participating in training for prospective employees will receive a monthly allowance of 1 million KRW, consisting of a basic training allowance of 200,000 KRW plus an additional 800,000 KRW during the training period. Shipbuilding companies that newly hire job seekers aged between 35 and 49 and maintain employment for more than three months can receive a leap incentive of 1 million KRW per month for up to one year.
Furthermore, through the Reemployment Support Project for Skilled Retirees, if a shipbuilding company hires a production worker who retired at age 50 or older or has more than 10 years of production experience in the shipbuilding industry, both the employer and the worker will receive support payments of 500,000 KRW each for up to six months.
Shipbuilding-related companies and workers in Changwon City can receive consultation on support projects at the Shipbuilding Leap Center installed in the Jinhae District Office Civil Service Center.
Hong Nam-pyo, Mayor of Changwon Special City, said, “Although the designation of Jinhae District as an employment crisis area ended at the end of last year due to improved employment indicators from the recent shipbuilding order boom, the shipbuilding employment market remains unstable, and follow-up support is needed for full recovery.” He added, “Through the Regional Plus Job Project, we will actively support the shipbuilding industry's leap forward by reducing companies’ wage burdens, compensating for workers’ low wages, and inducing long-term employment to resolve recruitment difficulties.”
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