The shipbuilding industry, grappling with chronic labor shortages, is seeing signs of stabilization in its operations as the government has deployed over 14,000 personnel this year. However, concerns about technology leakage and employment uncertainty are rising, as 86% of these new recruits are foreign workers.
According to industry sources on Nov. 12, the Big 3 of domestic shipbuilding - HD Korea Shipbuilding & Offshore Engineering, Hanwha Ocean, and Samsung Heavy Industries - are breathing easier thanks to the government’s infusion of labor.
The government has announced that it has injected a total of 14,359 workers into the domestic shipbuilding industry by the third and fourth quarters of this year. This number includes local workers, skilled workers (E-7), and unskilled workers (E-9), surpassing the forecasted shortage of 14,000 workers by the end of the year. Specifically, 2,020 local workers, 6,966 skilled workers, and 5,373 unskilled workers have been replenished at the sites.
However, there is concern that without continuous replenishment, it will be challenging to handle the increasing workload. An industry insider commented, “As orders continue, construction volumes are expected to increase next year, requiring about 20% more workforce than currently.”
According to the Korea Offshore & Shipbuilding Association, the domestic shipbuilding industry will need an additional 135,000 workers by 2027 to maintain competitiveness. This figure is about 43,000 more than the approximately 90,000 workers employed in the industry last year.
Shipbuilders are thus focusing on enhancing the skills of foreign workers and facilitating their settlement. The industry estimates that it takes a minimum of 1-3 years for foreign workers to reach the average skill level of domestic workers. In response, the Big 3 shipbuilders are partnering with local governments to operate technical training centers, offering training in welding, smart ship technology, and painting.
An industry representative added, “In addition to recruiting foreign workers, it’s crucial to create an environment for their quick settlement. We are supporting this through interpreter placement, offering global convenience food, and producing safety manuals in foreign languages.”
To ensure continual replenishment, there are calls to move away from subcontractor-focused employment structures and improve job stability. A representative of the Korean Metal Worker’s Union said, “Currently, 80% of the processes are carried out by in-house subcontractors, volume teams, and migrant workers. The entire production relies on subcontracting, re-subcontracting, and migrant labor.” They continued, “For the Korean shipbuilding industry to maintain its competitiveness, it is essential to steadily develop skilled workers. However, there are concerns about declining productivity and quality as a result.”