Hyundai Heavy promises job security for workers at spin-off biz units

All Headlines 11:16 February 07, 2017

SEOUL, Feb. 7 (Yonhap) -- Hyundai Heavy Industries Co., a major shipyard here, has promised job security for its employees who work at non-shipbuilding business units scheduled to be spun off this year, stressing that hiving off such units will boost their corporate value.

Earlier, the shipyard's labor union demanded that the company scrap its plan to spin off non-shipbuilding units, which it claims will lead to a sell-off.

Last year, Hyundai Heavy unveiled a scheme to reorganize its businesses into six separate companies this year in its latest efforts to regain competitiveness and financial health. The decision comes in the form of part of the shipyard's self-rescue plans in which it said it will seek to sell noncore assets and cut jobs.

In a message to its employees, Hyundai Heavy said the planned spin-off is aimed at securing competitiveness, and all employees' job security will be fully guaranteed.

Hyundai Heavy shifted to a net profit of 971.19 billion won (US$850 million) in the January-September period from a net loss of 985.17 billion won a year earlier, largely thanks to its efforts to cut costs.

For the year of 2016, the company is widely expected to swing back into the black.

Hyundai Heavy and the other leading Korean shipbuilders -- Samsung Heavy Industries Co. and Daewoo Shipbuilding & Marine Engineering Co. -- have been under financial strain amid a delay in the construction of offshore facilities and falling new orders, which resulted in massive losses.