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| Hyundai E&C's headquarters in Seoul / Courtesy of Hyundai E&C |
By Park Jae-hyuk
Subcontractors specializing in framework construction are threatening to suspend their work at Hyundai E&C's construction sites nationwide this week, citing the builder's refusal to accept their request to raise payments to compensate for soaring labor costs, as well as the prices of ready-mix concrete and rebar, according to industry officials, Sunday.
Hyundai E&C said it is reviewing the validity of increasing payments for their framework construction.
"None of our subcontractors told us that they would suspend their work," a Hyundai E&C spokesman said. "We will do our best to prevent the suspension of our construction."
However, Hyundai E&C has yet to reach an agreement with a group of framework constructors that decided last Thursday to indefinitely halt their work at the builder's 45 construction sites.
The framework constructors have particularly criticized Hyundai E&C for its indifference to negotiation.
Some of them had already suspended their work for a day in March at around 30 construction sites nationwide, saying that managers of those sites had refused to accept their request to increase payments for their work by 20 percent.
They made the request in February through a letter sent to the nation's top 100 builders.
"When we received orders last year, we were not able to anticipate the sharp rise in material and labor costs or the delayed supply of ready-mix concrete and rebar," the subcontractors said in the letter. "It is inevitable for us to request adjustments to the contracted prices."
They resumed their work after several builders indicated their intention to start negotiations.
The Ministry of Land, Infrastructure and Transport also hosted a meeting between builders and framework constructors, amid an unprecedented increase in costs caused by the pandemic-led global supply chain crisis and difficulties in importing raw materials from Russia in the wake of the country's military conflict with Ukraine.
However, both sides have faced difficulties in reaching an agreement.
According to industry sources, several framework constructors are also considering suspending their work at the sites of other builders, such as Samsung C&T and DL E&C.
They are expected to reach a decision during a meeting slated for Monday.
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