By Jhoo Dong-chan
The nation’s big three shipyards have dismissed a total of 3,000 workers in the third quarter as part of their ongoing restructuring this year.
According to sources, the number of workers at Hyundai Heavy Industries (HHI) was 23,700 by the end of the third quarter, compared to 26,299 the previous quarter, which means it dismissed 2,599 workers to cut labor costs.
Of them, 1,700 workers left the company under a voluntary retirement program, while 100 left at the end of their contracts. The remaining 800 workers were transferred to HHI’s facility-managing affiliate HHI MOS, which was established on Aug. 1.
Daewoo Shipbuilding & Marine Engineering (DSME), which dismissed 500 workers in the first half this year, laid off another 200 in the third quarter. The number of the shipyard’s employees was reduced to 12,500 by September.
Another shipbuilding giant Samsung Heavy Industries (SHI), however, did not carry out a massive layoff program in the period since it had already done so in the second quarter.
SHI laid off a total of 1,500 workers in the first half this year to reach 12,500, and another 100 workers left the company in the third quarter.
“If the big three downsized their workforces by 3,000, their subcontractors would have done the same with their employees. I assume tens of thousands of workers lost their jobs in the period,” said an industry insider.
The shipbuilders have already laid off about 6,000 workers this year due to the global downturn, and such trends are expected to prevail in the fourth quarter this year as well as early next year if the so-called “order cliff” continues.
Entering the fourth quarter, DSME forced its workers to submit voluntary retirement applications the company could keep “in its desk.” In October the company reduced its workforce by an additional 1,200 workers. Now, the number of DSME workers is 11,300.
HHI said it won’t downsize its workforce anytime soon. However, it will need to if the nation’s largest shipyard divides some of its affiliates next year.
HHI is reportedly reviewing its plan to establish separate corporate entities for its electronic system and equipment departments early next year. If it does, the number of HHI workers would be reduced once again.
SHI will also carry out an additional layoff program early next year under its restructuring plan submitted in June. It said it will downsize its workforce by 30 to 40 percent by 2018.
In order to meet its plan, SHI is expected to lay off 2,500 workers next year.