Korean media reports that a number of South Korean shipyards will start from the end of July, one to two weeks of high temperature vacation, the specific length of the vacation depends on the company’s situation. Based on the nature of the shipbuilding industry, shipyards will be completely shut down during this period.
South Korea’s shipbuilding industry sources revealed that South Korea’s three major shipbuilders – HD Korea Shipbuilding & Offshore Engineering (HD KSOE) (or HD Hyundai), Hanwha Ocean, Samsung Heavy Industries will start from the end of July to enter the “centralized system of vacation”.
By company, the vacation period for HD KSOE’s three shipbuilding subsidiaries is scheduled from July 29 to August 8, and together with the statutory rest days (Saturdays and Sundays), the shipyard employees will be able to enjoy up to 13 days of vacation.
During the vacation period, HD Hyundai Heavy Industries Ulsan/Gunsan Shipyard, HD Hyundai Mipo Ulsan, and HD Hyundai Samho Yeongam will be closed, and 40,000 employees including suppliers will be on vacation at the same time. According to the labor agreement, HD Hyundai Heavy Industries, HD Hyundai Mipo, and HD Hyundai Samho will pay 50% of the contractual salary for the employees on leave as a leave expense.
The length of Hanwha Ocean’s vacation varies by job function and position. Hanwha Ocean’s production workers and employees will take a 10 days’ vacation from July 29 to August 9, with a maximum of 16 days of vacation after adding statutory days off (Saturdays and Sundays), while general employees at the senior level and above will be allowed to take a 5-days’ vacation from August 5 to 9, with a total of 7 days of vacation after adding statutory days off (Saturdays and Sundays). About 8,500 employees, including Hanwha Offshore & Marine’s Geoje Shipyard, Siheung R&D Park, and Seoul office, will each receive 800,000 won (about $580) in vacation pay.
Samsung Heavy Industries will be on vacation for five days from August 5 to 9, plus seven days in total on statutory days off (Saturdays and Sundays). About 1,000 employees will receive the leave. The vacation pay will be counted as annual salary and will not be paid separately. Samsung Heavy Industries said it encourages employees to take vacations as soon as possible, but some non-productive employees who do not work at the shipyard are relatively free to do so.
Although the shipyards have indicated that they will take a “collective summer vacation”, some of the employees responsible for maintenance, repair and servicing will remain at their posts during the closure of the shipyards, and will work in shifts as an indispensable part of the workforce and take vacations on a rotating basis at other times, rather than taking centralized vacations.
The reason why the shipbuilding industry can close its yards and take a vacation all at once is due to the nature of outdoor work in the industry. Midsummer, from late July to early August, is the hardest time for shipyard workers, with temperatures rising as high as 40 to 50 degrees inside the shipyard. During this period, shipyards should take various measures to ensure working conditions for on-site workers to prevent heat stroke and dehydration, such as extending lunch breaks, installing shading facilities and installing ice machines.