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By Kim Hyun-bin
Korean shipbuilders are struggling with the worsening shortage of skilled workers after having received record-breaking orders over the past year, according to company officials Thursday. The companies need to act fast to secure qualified employees because they expect to take more orders in the coming months, but the situation is unlikely to improve as it takes time to nurture veteran workers, they said.
A large number of skilled workers left the industry after it faced more than a decade of recession. The central and local governments are initiating support measures to better secure workers for the shipbuilding industry, but many experts believe it will not be enough to bring experienced workers back.
The three leading shipbuilders ― Korea Shipbuilding & Offshore Engineering (KSOE), Samsung Heavy Industries and Daewoo Shipbuilding & Marine Engineering (DSME) ― exceeded their target order procurements last year, winning large orders for high value-added ships such as liquefied natural gas (LNG) carriers and large container ships.
KSOE won orders worth 25.1 billion last year, exceeding its target for the year by 50 percent. Samsung Heavy recorded orders of $12.2 billion, a 34 percent increase, and DSME netted $10.9 billion, 40 percent more than expected.
However, there is a shortage of workers to build the ships. According to the Korea Offshore & Shipbuilding Association, the number of workers in the shipbuilding industry stood at 92,809 as of last November, down by more than half from 2015 when there were 202,689.
During the shipbuilding recession, many workers moved to other industries, leaving shipbuilders scrambling to meet the demand for shortage of personnel.
"The organization has been downsized due to the long-term recession in the shipbuilding industry, and we have not been able to hire any skilled technicians since 2015. But we are currently hiring personnel and expanding the number of technical training centers," a KSOE official said. "It is not to the extent that normal operation is impossible, but it is true that we need to prepare in advance."
Since the end of last year, shipbuilders have been working hard to secure workers through the operation of professional personnel training programs. Hyundai Heavy has started hiring skilled technicians for the first time in seven years.
Industry officials say shipbuilding is perceived as a risky industry, and with the reduction in overtime hours and overtime pay after the implementation of the 52-hour workweek system, skilled workers who left the shipbuilding industry are not returning even now that the industry has recovered.
"Many highly skilled personnel left the shipyards during the worst recession in history, and it is difficult to hope that they will come back now," said a spokesman at one of the nation's top three shipbuilders. "Also COVID-19 has made it difficult for foreign workers to enter the country, making it even more difficult to fill the staffing gap quickly."
The government and local governments have been focusing on cities and provinces where major shipyards are located to provide living expenses to those engaged in shipbuilding-related businesses, as well as employment subsidies to small- and medium-sized enterprises (SMEs) that employ young workers.
However, analysts point out the need for fundamental solutions to resolve the shortage issue such as easing the Act on Punishment of Serious Accidents and the 52-hour workweek system that have made companies reluctant to actively hire.
