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KMID : 1001320170440020111
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Social Welfare Policy
2017 Volume.44 No. 2 p.111 ~ p.143
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Subcontracting workers outside of Korean Social Safety net: A case study of subcontracting workers in Ulsan Shipbuilding industry
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Lee Seung-Yoon
Kim Eun-Ji
Park Ko-Eun
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Abstract
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This study focuses on the changes in the employment structure of subcontracting workers in the shipbuilding industry, which has been regarded as a internal labor market in Korea. For this purpose, we conducted a qualitative research on in-depth interviews with subcontracting workers including secondary subcontracting workers(Moolyangteam) in Ulsan, where the shipbuilding industry is concentrated. Through this, this research aims to investigate how subcontracting workers are experiencing social safety nets, and ultimately analyze the mismatch between Korean subcontract labor market and the social security system. As a result, the subcontracting companies have a relationship that depends on the main company(company giving out the contract). In this multi-level contract structure, the subcontracting companies can only save profits by reducing labor cost and social insurance premiums. In addition, there is no rules on contract period between main company and subcontracting company, between subcontracting company and secondary subcontracting workers. Also, there is no punitive regulation for delinquent social insurance premiums including retirement allowance. Therefore, as subcontracting companies attempted to compete for survival, the working environment and wage of subcontracting workers were sacrificed, and subcontracting workers were not protected from the social safety net. In this regard, legal and policy intervention should be made to enhance the enforcement of direct employment; guarantee of the contract period between main company and subcontracting company; guarantee of the employment period of the subcontracting workers; to impose obligations on delinquency and nonpayment of social insurance premiums including wages and retirement benefits. This study on the experience of subcontracting workers and social insurance has implications not only for the shipbuilding industry but spreading subcontracting employment structures and mismatch of the social safety net, resulting serious precariousness of the subcontracting workers.
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KEYWORD
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Subcontract labor market, Shipbuilding industry, Social safety net, Secondary subcontracting worker, Social insurance, Industrial Accident Compensation Insurance
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