Hyundai Steel sets upfirm to hire contractors

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Hyundai Steel sets upfirm to hire contractors

 Hyundai Steel plans to create a specialized subsidiary in a bid to directly hire contractors, the company announced. The workers, originally hired by Hyundai Steel’s suppliers, will be offered permanent positions in the new company.

Hyundai Steel is the first Korean manufacturing company of its size to directly hire its suppliers’ employees as permanent workers.

The decision comes after due deliberation, as the steelmaker was only recommended, not legally required, to establish the subsidiary. Taking its corporate social responsibility seriously, Hyundai Steel aims to improve the working environment for its employees and invigorate the local community despite the instable economic situation, the company explained.

Hyundai Steel created a corporate entity last July and wrapped up the hiring process in August. Three subsidiaries in Incheon, Pohang and Dangjin will start operation from Sept. 1.

The new subsidiary will offer a 30 percent salary increase, Hyundai Steel said. The steelmaker expects the improved working conditions, including a salary raise and better benefits, to lead to the revitalization of the local economy and improve productivity and product quality.

“If more subsidiaries are established for each factory and become stabilized in the future, additional profit of hundreds of billions won and some 7,000 jobs will be created,” an official from Hyundai Steel said.

“As Hyundai Steel is the first in the industry to implement this employment stabilization method, we expect the decision will lead to the revitalization of the local economy after the pandemic. Support from other organizations and local communities will be greatly appreciated.”

By Shin Ha-nee []
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