Thai Ministry of Labor reached an agreement with Korean Shipbuilding Association including Hyundai, to open a window for Thai skilled workers willing to go to Korea. Korean shipbuilding industry is experiencing a shortage of skilled workers, such as welders (some 4,000 vacancies); electricians (1,800 vacancies); painters (1,400 vacancies). South Korea has increased migrant quota by 20%, aiming at skilled work force, with Thais being among top wanted workers. South Korea meanwhile, was to send industry representatives to Thailand to test applicants’ skills. Korean Government is considering the shift in age limits, allowing more workers to enter Korean labor market. Understood proposed age shift applies both to current Korean and Thai age limits.
Many Thais choose to enter Korea as tourists and work illegally. Bangkok Post estimates last year a total of 18,221 Thai nationals were legally employed while the number of illegal workers known as phi noi or “little ghost” was estimated to be at about 140,000, according to statistics provided by South Korean Embassy.
There is a language proficiency test required from Thai workers, who seek employment in Korea, there are other requirements which have to be met, and finally, Thais who officially apply for employment entry but were rejected, will lose some 30,000 Baht, understood in forms of miscellaneous fees, which have to be paid.
Obstacles and barriers don’t decrease the number of Thais willing to work overseas, now, when the labour market in South Korea is bursting with activity with the pandemic restrictions easing.
Another problem questioning migrant workers project success, arises in South Korean Shipbuilding Industry itself. There’s a growing Korean labor unrest and protest against industry’s efforts to bring in less expensive foreign labor. Says Maritime Executive:
“Workers across South Korea’s shipbuilding industry are intensifying their labor actions protesting the shortage of skilled workers and the industry’s efforts to bring in less expensive foreign labor to meet the current shortages in key skills. The umbrella union that represents workers at eight of the major shipbuilders announced today that it would join the strike against Hyundai Heavy Industries.
Protests began in late April in response to the government’s announcement that it would relax visa requirements at the request of the shipbuilders. The new visas are specifically for skilled workers for the shipbuilding industry including welders, painters, and others with essential skills.
The move came after the shipbuilders pressed the government saying that they did not have enough skilled workers to keep pace with their orderbooks and the flow of new contracts. Each of the major shipyards is reporting that their orderbooks are full into 2024 with as many as 37 additional ships ordered in just the first three months of 2022. The 2022 orders were equivalent to half of 2021’s already elevated pace continuing the surge in business for the shipbuilders.
The unionized workers of Hyundai’s three shipyards, as well as Samsung Heavy Industries, Daewoo Shipbuilding & Marine Engineering, HSG Sungdong Shipbuilding, K Shipbuilding, and HJ Shipbuilding & Construction, are all supporting the labor actions. They are blaming the shipbuilders for creating the problem and now undermining the long-term health of the industry and their jobs.
The unions are calling for higher wages, improved labor conditions, and the rehiring of workers let go in recent years. The unions contend that employment fell from over 200,000 mid-decade to around 90,000 in 2021. Automation has offset some of the declines but many tasks they highlight required skilled workers. The unions argue the shipyards laid off too many workers and are doing little to attract young people to join the workforce.”
Industry seems to suffer mostly from rising costs of everything, from raw materials to logistics, with probably, new technologies, required to meet new and unreasonable “environment” regulations, being the most costly issue. Cost of everything is on the rise, no wonder industries are trying to economize and save each extra dollar or won. World economy isn’t as of recent, an economy of peaceful times of prosperity, ruled by free market and common sense, it’s an economy of war and survival.
Source: https://www.fleetmon.com/maritime-news/2022/39049/thai-workers-wanted-korean-shipbuilding-industry-c/
