On September 9, an accident occurred at Hanwha Ocean Geoje Shipyard in which an outsourced worker fell to his death from a height. Subsequently, Ministry of Employment and Labor (MOEL) issued a work stoppage order. Hanwha Ocean applied to lift the suspension order several days later, but the request was rejected.
According to the Gyeongsangnam-do headquarters of the Korean Confederation of Democratic Labor Unions on Sept. 27, the MOEL’s Tongyeong Regional Office held a review committee meeting on Sept. 24 and decided to reject Hanwha Ocean’s application for lifting of the work stoppage order. The review board rejected Hanwha Ocean’s application to lift the suspension, citing a lack of specific measures to prevent falls and a failure to conduct a risk assessment of the process of integral lashing bridges (structures used for loading and securing containers).
The work stoppage stems from a major safety accident that occurred in early September at Hanwha Ocean. At 10:57 p.m. on September 9, an outsourcing worker, A, in his 40s, fell about 30 meters from the top of a container ship under construction at Hanwha Ocean Geoje Shipyard to the bottom of the ship. The accident resulted in serious injuries to A, who eventually died. At the time of the accident, A was working overtime on the night shift. The MOEL immediately issued a stop-work order to Hanwha Ocean.
Hanwha Ocean filed a application for relief from the stopwork order on September 20, which was denied on September 24th.
Under Korea’s Occupational Safety and Health Act, when an employer applies for the lifting of a work stoppage order after taking necessary measures, the relevant review board decides whether or not to lift the work stoppage order by examining the improvement of harmful and hazardous factors as well as the necessary safety and health measures.
The day before the Review Committee meeting (September 23), National Assembly (South Korean) Member Chung Hye-kyung visited Hanwha Ocean and inspected the accident site. It was noted that the Tongyeong Regional Office had issued a suspension order after the accident, but that the suspension order was limited to “lashing bridge installation work” and that other operations were still under way at the accident site. The decision by the Tongyeong Regional Office shows that Hanwha Ocean is rushing to reopen despite a series of serious accidents and is not prioritizing the safety of its workers.
According to an official from the Gyeongsangnam-do headquarters of the Korean Confederation of Democratic Labor Unions, “Hanwha Ocean was in a hurry to lift the work stoppage order, and therefore did not take into account the overall risk situation.” In response to the review board’s dismissal, Hanwha Ocean said, “Hanwha Ocean will actively accept internal and external opinions on the company and work closely with external experts and relevant organizations to further strengthen the company’s safety management system.”
So far this year, Hanwha Ocean has been involved in a number of accidents that have resulted in the deaths of workers. In response, Hanwha Ocean recently announced that it will invest billions of dollars in shipyard safety to further strengthen its safety management system.
Hanwha Ocean plans to invest 1.976 trillion won ($1.487 billion) in advanced safety systems by 2026, aiming to create the world’s “safest shipyard” by creating a safe working environment for all employees. The funding includes a regular safety budget of 1.13 trillion won (about $850 million) and an investment budget of 846 billion won (about $637 million) for new safety facilities.
In addition, Hanwha Ocean will conduct a more thorough safety compliance check, which is carried out twice a year within the company. And it will perform the 23 strategic tasks required by Det Norske Veritas to achieve the highest International Safety Rating System (ISRS) in the Korean manufacturing industry.
Earlier this year, Hanwha Ocean was fined more than 100 million won (approximately $531,000) for violating the Occupational Safety and Health Act following a special inspection by the MOEL. Since then, Hanwha Ocean has been involved in a succession of fatal accidents, and major problems have been noted in the operation of the company’s safety management system.