Migrant workers in South Korea's shipbuilding boom form unions to protest unfair contracts

Migrant workers in South Korea's booming shipbuilding industry are pushing to form labor unions to combat what they describe as unfair treatment and exploitative contracts. The movement gained momentum after HD Hyundai Heavy Industries modified employment contracts for its directly hired migrant workforce.

Under the revised contracts, the company shifted from deducting meal costs to offering free meals, but simultaneously cut base pay from approximately 2.04 million won to 1.8 million won per month. The new contracts also include 30 hours of overtime pay per month. Previously, the company had deducted over 500,000 won monthly for living expenses, including accommodation and meals. While HD Hyundai Heavy Industries has since agreed to provide free meals and retroactively refund previously deducted meal expenses, many migrant workers feel the changes are insufficient.

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Are we slaves? We must fight!

Workers, like Charitha from Sri Lanka, who spoke at a rally outside the HD Hyundai Heavy Industries shipyard in Ulsan, expressed their frustration, questioning if they were being treated as "slaves." He held up his union membership application, emphasizing the need for collective bargaining power. Despite the company's recent concessions, including plans to increase base pay annually and offer performance-based bonuses, some migrant workers are still refusing to sign the new contracts, while others who have signed are protesting that their consent was not voluntary.

The issue highlights broader concerns about the impact of low-wage migrant labor on the domestic job market and the regional economy. While the shipbuilding sector is experiencing a boom, the local economy has not seen a proportional benefit. The government's "wide-area visa" program for the shipbuilding industry aims to address labor shortages, but critics argue that without improvements in wage structures, migrant workers will struggle to settle in the community. Currently, migrant workers constitute about 25% of the total workforce when including subcontracted labor, and their collective action could significantly influence labor standards and economic outcomes.

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We must fight!