Hyundai Heavy proposes unpaid temporary lay-off for offshore plant workers

By Lim Chang-won Posted : July 20, 2018, 16:12 Updated : July 20, 2018, 16:12

[Yonhap Photo]


SEOUL -- Hyundai Heavy Industries, the world's largest shipyard, has proposed an unpaid leave of absence for workers at its idle dockyard for offshore plants, rejecting the union's request for redeployment to ensure job security.

The temporary lay-off came at negotiations between management and union leaders on Thursday when the 12,000-member union went on a six-day strike.  As yet, the strike has not seriously affected Hyundai Heavy's overall operation because many workers did not actually down tools.

Hyundai Heavy plans to close its dockyard for offshore plants in the industrial city of Ulsan in August when it sends the last part of an offshore module for fixed platforms in an oilfield northwest of Abu Dhabi. The offshore plant dockyard has been manned by some 2,600 regular workers and 3,000 others from subcontractors. 
 
For 44 months, Hyundai Heavy has failed to win any orders for offshore plants. In the January-June period, it received $2.87 billion worth of orders, far short of the first-half target of $10.17 billion.

For years, Hyundai Heavy has been involved in sweeping restructuring to ride out a protracted business slump. In 2017, sales were down 31 percent on-year to 15.4 trillion won (14 billion US dollars) and operating profit fell 96 percent to 14.6 billion won.

This week, shipbuilders made desperate calls for a freeze in the prices of thick steel plates, saying they cannot endure any further hikes due to falling sales and profitability.
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