Hanjin HI to implement five days working

Hanjin Heavy Industries in South Korea plans to implement a five-day working week from March this year. This is the first time such a move has been introduced in the Korean shipbuilding industry. Although the shipbuilder expects that the shortened working week will cause a reduction output and increase labour costs, it aims to improve productivity by developing new production methods covering organization and systems.

Daewoo Shipbuilding also plans to implement a five-day working system from 1 July this year.

Meanwhile, Hanjin reports that its turnover last year was reduced to $1.28 billion from $1.36 billion in 2002. The Busan-based shipbuilder said that the decrease was caused by labour disputes last year. Its operating profit is also reduced by 30.7% to $73 million but gross profits rose by 55% to $36 million.