South Korean shipbuilders are facing a serious shortage of workers. This is because they have gone through a 10-year slump and a large number of skilled workers left the companies in that period.
Last year, Korea Shipbuilding & Offshore Engineering signed new contracts adding up to US$25.1 billion to exceed its annual goal by 50 percent. The figures are US$12.2 billion and 34 percent for Samsung Heavy Industries and US$10.9 billion and 40 percent for Daewoo Shipbuilding & Marine Engineering.
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The number of workers in the industry dropped from more than 202,000 to less than 93,000 from December 2015 to November last year. In the industry, it takes about a year from contract conclusion to manpower input. In other words, the three shipbuilders’ manpower shortage is likely to become even more severe in the second half of this year.
Subcontractors’ conditions are even worse. “This sector is regarded as dangerous by many, 52-hour workweek resulted in a decrease in overtime pay, and skilled workers outside the industry are refusing to return for such reasons,” said an industry source, adding, “Besides, COVID-19 led to a decrease in foreign workers while raising their wages.”
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