Hyundai Heavy faces a series of daunting tasks

The Korea Times


Hyundai Heavy faces a collection of daunting duties

Hyundai Heavy Industries Ulsan Shipyard / Yonhap
Hyundai Heavy Industries Ulsan Shipyard / Yonhap

Shipbuilder faces security investigation, rising metal sheet costs and labor disputes

By Kim Hyun Bin

Hyundai Heavy Industries (HHI) is dealing with a collection of daunting duties because it tries to emerge from its years-long enterprise hunch, in response to business officers on Wednesday. The shipbuilder is dealing with authorities investigations into its security information following the latest demise of a subcontractor at its manufacturing unit in Ulsan. It should additionally pay extra for metal sheet, which accounts for the majority of its manufacturing prices, in step with rising costs for iron ore and different uncooked supplies, as its unionized employees threaten to depart until their calls for are met.

The Ministry of Employment and Labor carried out a search and seizure of HHI’s Ulsan headquarters and the workplaces of its subcontractors on Tuesday in reference to the April 2 demise of a subcontractor at HHI’s Ulsan Plant Panel 2 plant. The employee misplaced consciousness in an explosion whereas slicing a sheet of metallic and was taken to a hospital, however ultimately died.

Kwon Oh-gap, President of Hyundai Heavy Industries
Kwon Oh-gap, President of Hyundai Heavy Industries

HHI is topic to the Severe Accident Punishment Act because it has greater than 50 full-time employees. The Ministry of Labor plans to confirm that every one security protocols have been complied with. If security administration is discovered to be inadequate, the employer or enterprise supervisor might be jailed for as much as one 12 months or fined as much as 1 billion received.

“To stop severe accidents, HHI plans to extend the scope of subject administration and improve security precautionary measures,” stated an HHI official.

The corporate can be dealing with an increase within the value of metal sheets, which is able to damage its profitability. POSCO plans to finalize value negotiations with shipbuilders this week, and the value is predicted to extend by a minimum of 100,000 received per metal sheet.

Shipyards insist on a value reduce or freeze, however it’s unlikely to be accepted as a consequence of rising costs for uncooked supplies akin to iron ore and metallurgical coal used to make iron.

If there’s a rise within the value of metal sheets, which account for round 20% of shipbuilding prices, there’s a risk that this may detract from the efficiency of Korea Shipbuilding & Marine Engineering, an intermediate holding firm within the HHI Group’s shipbuilding division. .

As well as, the HHI union will maintain a seven-hour strike from Wednesday and an eight-hour strike from April 28 to Might 4, until administration responds to the resumption of negotiations over 2021 wages.

“Uncertainty within the exterior surroundings of the shipbuilding business has tremendously elevated as a consequence of rising uncooked materials costs and workers shortages,” an HHI official stated. “Now is just not the time to go on strike, however for employees and managers to work collectively to strengthen competitiveness.”

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