Report: HHI Asks 5,000 Workers to Take Unpaid Leave amid Work Shortage

Image Courtesy: HHI

Due to insufficient workload, South Korean shipbuilder Hyundai Heavy Industries (HHI) has been faced with over 5,000 of idle workers.

As a result, the company has asked its union to convince the workers to take an unpaid leave starting September, the Korea Times reports citing a statement from the company. The unpaid leave option is voluntary, however, should it be turned down, the workers would be subject to training, as the union rejected a 20 percent pay cut.

Specifically, the company’s backlog stands at 85 ships, considerably lower when compared to last year’s 110 ships.

As indicated by a company official, there are currently only ten ships being constructed at the yard, rendering 5,000 workers idle, the Korean newspaper reported.

It is believed that the work shortage is likely to be resumed until June next year. Should the ordering activity continue to dwindle the shipbuilder might be faced to close more of its yards.

The latest workforce-related measure is said to be driven by HHI’s cost cutting efforts aimed at keeping the shipbuilder financially stable.

HHI reported a 49.7 percent drop in its net income during the second quarter of 2017 totaling in KRW 69.2 billion (USD 61.6 million).

The net income fell from KRW 137.5 billion (USD 122.5 million) seen in the same three-month period in 2016.

World Maritime News Staff

Share this article

Follow World Maritime News

In Depth>

Events>

<< Nov 2017 >>
MTWTFSS
30 31 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 1 2 3

Maritime Information Warfare 2017

Maritime Information Warfare will focus on the growing need for navies to develop their information exploitation capabilities…

read more >

INTERNATIONAL GREEN SHIPPING AND TECHNOLOGY SUMMIT

The Summit will gather key marine experts and companies around the globe which have a big influence in the industry…

read more >

The CWC 18th Annual World LNG Summit & Awards Evening

The CWC World LNG Summit will continue to give you access to premium networking opportunities as it brings together the who’s who…

read more >

Marintec China 2017

The largest maritime event in Asia Pacific, Marintec China connects maritime professionals from the entire shipbuilding supply chain together.

Over the years, Marintec China has grown to reflect the size and importance of the Asian maritime market. 2015 event is another record-breaking edition with the largest exhibition area and the highest number of industry professionals attending ever. The encouraging figures proven that China remains one of the major shipbuilding nations and Marintec China has been the most authoritative platform in Asia.

With the maritime industry facing great opportunities but also many challenges, it is important for the industry to connect and engage more to ultimately win new business in globally-significant markets. A visit to Marintec China is a great way to learn about the latest technology and innovation of the supply industry, a platform for industry professional to meet face to face, make connection and do business.

Marintec China is poised to be the definitive event and is undoubtedly a must-attend for all involved in the maritime industry.

Marintec China will be held from 5 to 8 December 2017 at the Shanghai New International Expo Centre in Shanghai, China and continue its dedication to serve as the “LEADING” platform “CONNECTING” the community and “STRENGTHENING” the maritime industry.

Marintec China offers the perfect opportunity for companies serving the maritime market to showcase their innovations, products and services to a wide audience. A platform for face to face meetings in business, creating new relationships and consolidating existing ones.

More info

read more >