Significant Minority
While the number of migrant workers is on the sharp rise in workplaces such as shipyards that require large-scale labor in Korea, the metal workers union under the Korean Confederation of Trade Unions (KCTU), which has been opposed to Korean companies’ employment of foreign workers in the past, is rapidly shifting its policy toward making them sign up for union membership.
In response to the Korean government’s revision and implementation of guidelines on issuing E-7 visas for specific activities in early 2022, the KCTU immediately issued a statement strongly criticizing the relaxation of immigration regulations for migrant workers to Korea.
In one month since putting out the statement, the metal workers union about-faced. “Shipyards are crowded with subcontracted workers,” said an official of the metal workers union. “The number of migrant workers among subcontracted workers is rapidly growing, so many labor union leaders now say that the metal workers union should not give them the cold shoulder but embrace them.”
The percentage of migrant workers in major shipyards has already grown to double digits in Korea. As of the first quarter, HD Hyundai Heavy Industries, Samho Heavy Industries, and Hyundai Mipo Dockyard reportedly employ a combined total of around 5,700 migrant workers. The figure accounts for 19 percent of their total outsourced workforce. Hanwha Ocean and Samsung Heavy Industries have 1,600 migrant workers (11 percent) and 1,100 migrant workers (9 percent), respectively. The proportion of foreign workers is bound to go up as the three shipbuilders plan to hire around 1,000 migrant workers more this year.
Korean shipbuilders believe that the unionization of migrant workers may become a major concern for them in the future, if not now. Currently, the biggest problem for shipyards is production delays. Since a shipbuilding boom began in 2022, orders have soared. HD Korea Shipbuilding & Offshore Engineering (KSOE) received US$23.9 billion in orders in 2022 alone, exceeding 38 percent of its initial target. Hanwha Ocean and Samsung Heavy Industries have secured work 16 percent and 7 percent above their targets, respectively. All three shipbuilders have secured three to four years’ worth of work.
Korean dockyards have been barely staffed with Korean workers, which is slowing down progress in shipbuilding. In response to this situation, the Korean government has eased visa requirements to attract foreigners to work.
Meanwhile, Korean shipbuilders’ partner firms that directly hire migrant workers are also in hot water. As the size of their foreign workforce grows, they are facing a number of problems, including unionization issues.
The metal workers union has recently begun organizing migrant workers. On May 24, union leaders met with migrant workers at Hyundai Samho Heavy Industries in Yeongam, South Jeolla Province, to listen to their voices and held an impromptu labor consultation for them.