Hyundai Heavy Industries implements paid leave rotation scheme for its employees, as a way for coping with work shortage and attempts to reduce costs. The five-week program rotation, which started on September 11, would help resolve the issue of the idle workforce, enabling them to keep their jobs. The scheme was proposed by the trade unions last month and involved around 7% of the company workers, which amount to 8,930 people.
The involved for being paid 70% of their average salary, instead of being sacked or left at unpaid vacation. Hyundai Heavy Samho Industries will release 2,680 people at paid leave for five weeks from October 16 to June 24, 2019.
The shipbuilder suffers from lower order backlog, which currently is 85 ships, against last year’s 110 vessels.
Hyundai Heavy Industries reported a 49.7% drop in its net income during the second quarter of 2017 totaling in 69.2 billion KRW (61.6 million USD).
Hyundai Heavy Industries is the world’s largest shipbuilding company, headquartered in Ulsan, South Korea. It has four business divisions: Shipbuilding, Offshore & Engineering, Industrial Plant & Engineering, Engine & Machinery.
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