Hanwha Ocean will signal an settlement with the federal government and the shipbuilding business to eradicate the hole between prime contractors and subcontractors. Because the shipbuilder lately determined to supply equal efficiency bonuses to each prime contractor and subcontractor employees, associated content material is predicted to be included within the settlement. Home shipbuilders are involved about the opportunity of the initiative increasing throughout the business, given the federal government’s involvement in contractual relationships between employers and employees.
In keeping with business sources on Dec. 25, Hanwha Ocean plans to conclude a memorandum of understanding (MOU) for eliminating prime contractor-subcontractor pay gaps with the Associate Firm Council and the Geoje-Tongyeong-Goseong Subcontractor Department in early January subsequent 12 months. Prime Minister Kim Min-seok is scheduled to attend the settlement ceremony and ship congratulatory remarks. Whereas particular particulars of the settlement haven’t been disclosed, business sources anticipate it to incorporate content material associated to addressing the continual pay gaps between prime contractors and subcontractors in shipbuilding websites, as this aligns with the present authorities’s coverage course. Notably following the Ministry of Employment and Labor’s presidential briefing on Dec. 11, after which Hanwha Ocean introduced its coverage to supply equal efficiency bonuses to employees of prime contractors and subcontractors, the primary content material is predicted to codify this and broaden it throughout the business.
Till now, home shipbuilders have offered completely different charges of efficiency bonuses to prime contractor staff and companion firm staff. For instance, Hanwha Ocean offered 150% of primary wage as efficiency bonuses to its staff this 12 months, however offered solely about 75% — half that quantity — to companion firm employees. Nonetheless, Hanwha Ocean’s place is to uniformly apply and supply 150% of primary wage, the identical price as prime contractor employees, for efficiency bonuses to be paid round February subsequent 12 months.
Labor unions are additionally pressuring the shipbuilding business in assist of the federal government’s coverage. On Dec. 24, the Geoje-Tongyeong-Goseong Subcontractor Department acknowledged, “We welcome Hanwha Ocean’s resolution,” whereas additionally asserting, “Reasonably than simply media play, they need to sit down with the shipbuilding subcontractor department for collective bargaining and faithfully negotiate fee targets and strategies.” The subcontractor department lately demanded collective bargaining with Hanwha Ocean based mostly on six anti-discrimination measures, together with equal efficiency bonus funds, however Hanwha Ocean has refused. Specifically, labor unions are exhibiting actions to broaden equal efficiency bonus funds not solely to Hanwha Ocean however throughout your entire home shipbuilding business. The Korean Metallic Staff’ Union issued a press release the identical day demanding: complete enlargement of equal fee charges for prime contractor-subcontractor efficiency bonuses, elimination of discrimination based mostly on tenure, nationality, and employment sort, speedy and honest negotiations with subcontractor unions, and cessation of all efficiency bonus and welfare discrimination towards migrant employees. It emphasised that “We hope Hanwha Ocean’s resolution doesn’t finish as a one-time declaration.”
As Hanwha Ocean is ready to signal an settlement containing such content material with the prime minister in attendance, the shipbuilding business is clearly in a state of bewilderment. This stems from issues that the federal government’s obvious involvement may exert appreciable strain on shipbuilding corporations. Notably with the full-scale launch of the MASGA (Make America’s Shipbuilding Nice Once more) venture approaching, they level out that shipbuilders, who wish to keep away from friction with unions and deteriorating relationships with the federal government, will probably be compelled to simply accept equal efficiency bonus funds. An business official mentioned, “Since Hanwha Ocean took the initiative first, different shipbuilders don’t have any selection however to observe swimsuit,” including, “Because the burden on small and medium-sized shipbuilders will inevitably enhance, this needs to be left to the autonomy of employers and employees.”
