No Work to Do
The last time Hyundai Heavy Industries’ marine business unit won a new contract was November 2014, when it clinched a deal for crude oil production facilities from the UAE.
The marine business unit of Hyundai Heavy Industries has finally decided to stop the operation of its plant for nine months due to the lack of work and receive applications for voluntary retirement from workers. No wage will be paid during the period. The voluntary retirement plan is the fourth of its kind since 2015.
The business unit has failed to win a new contract since November 2014, when it clinched a deal for crude oil production facilities from the UAE. The last module for the project was shipped out on August 20.
Hyundai Heavy Industries blamed unionized workers’ uncooperative attitude. “The management tried to avoid the worst-case scenario by making a concession with every employee, but the unionized workers refused to accept the request, forcing us to take action,” it explained.
At the same time, Hyundai Heavy Industries asked the Ulsan National Labor Relations Commission to approve the temporary shutdown. Once the commission gave its approval, the 1,200 or so marine business unit employees cannot get any pay from October this year to June next year. Still, the company will continue to provide annual leave allowances, vacation bonuses and the like.