South Korea’s largest shipbuilder Hyundai Heavy Industries has agreed with workers to establish a rotational paid leave scheme, amid decreasing rate in ship orders and industry downturn.
The rotational leave system will involve a total of 7 % of the company’s 8,930 shipbuilding workers.
In a bid to tackle the problem of idle workforce without firing workers, the company asked about 600 employees to leave for five weeks, starting from 11 September to 22 October, during which they will be paid 70% of their salaries.
However, during the first half of the upcoming year, the company plans to further cut workforce.
HHI’s subsidiary, Hyundai Heavy Samho, also reached a similar agreement with its worker union for the period of 16 October-24 June 2019.
Despite temporarily shutting its Gunsan shipyard in July, HHI is still left with a surplus of employees, as it faces minimization in ship orders. Recently, the company asked 5,000 workers to voluntarily take unpaid leave, claiming financial shortage.