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Hanjin Heavy Industries

A US$1 billion, 480-hectare Korean shipbuilding facility was put up at Subic Bay by Hanjin Heavy Industries. The project was expected to generate an estimated US$1-2 billion in annual exports and create 20,000 direct and indirect jobs. The South Korean-owned Hanjin shipbuilding facility is occupying 263 hectares of land at Barangay Cawag in Subic, Zambales, under a lease agreement made with SBMA in February 2006. There are two major activities being conducted at the shipyard: the ship building activity handled by Hanjin Heavy Industries Corporation Philippines Incorporated (HHIC ? PHIL. INC.) with 19 subcontractors and the construction activity handled by Hanjin Construction Company Limited Inc. (HHCL) with 55 subcontractors.

On 11 January 2008 President Gloria Macapagal-Arroyo witnessed today the signing of a Memorandum of Understanding (MOU) between Korean firm Hanjin Heavy Industries and Construction Co., Ltd. (HHICC) and Phividec Industrial Authority (PIA) on the construction of a US$2-billion shipbuilding complex here. Signing for HHICC was the company's president Park Kyu Woon while Administrator Nimfa de Ocampo signed for PIA. Phividec is the acronym of Philippine Veterans Investment Development Corporation. The President lauded the "billion-peso plus" investment, saying it would provide jobs and livelihood to some 40,000 Filipinos, especially those living near the shipbuilding facility.

Under the MOU, HHICC will establish a shipbuilding complex inside the 3,000-hectare Phividec Industrial Estate in Misamis Oriental (PIE-MO). The Misamis Oriental Shipbuilding Complex is the second shipyard to be built by Hanjin in the Philippines. The Korean firm's first shipyard in the country is at Subic Bay in Zambales. To be constructed in Park V of PIE-MO, the complex covers an area of approximately 440 hectares. Phividec is a government-owned and controlled corporation established under Presidential Decree 538 as amended by PD 1491. PIA was established to develop and professionally administer the 3,000-hectare Phividec Industrial Estate (PIE-MO) located in the municipalities of Tagoloan and Villanueva in Misamis Oriental.

In early 2009 the Committee on Labor and Employment chaired by Representative Magtanggol Gunigundo (2nd District, Valenzuela City) started its own investigation into the successive accidents resulting in death, injury or permanent disability of several workers employed at the Hanjin shipyard facility in Subic, Zambales. The inquiry was prompted by House Resolution 430 and Resolution 172, authored by Party List Reps. Risa Hontiveros of AKBAYAN and Rafael Mariano of ANAKPAWIS, which state that such alarming incidents of deaths and injuries would seem to indicate that these workers are working under hazardous and unsafe working environment. Dexter Datu of the Metal Workers Alliance of the Philippines (MWAP) and Daisy Arago of the Center for Trade Union and Human Rights (CTUHR), non-government organizations (NGOs) documenting and monitoring workers? condition at the Hanjin facility, revealed incidents of as high as 42 deaths from 29 accidents and 54 deaths due to malaria at the worksite.

In February 2011 Hanjin Heavy Industries and Construction Co. Ltd. Philippines (HHIC-Phil) the largest ship-builder in Asia informed the Department of Labor and Employment (DOLE) Regional Office 3 about the social and other benefit packages for its 21,000 workforce. In a meeting involving representatives from Hanjin and the DOLE Regional Office 3, represented by new regional director Labor Attache Leopoldo De Jesus, Hanjin presented some of the current and future benefit packages set for its employees.

HHIC – Phil contracted 150 shuttle buses, 50 jeepneys, and three bancas (boats). Moreover, it is operating two RORO (roll in, roll out) vessels for employees who commute from the city of Olongapo and provides buses which partner with RORO vessels. Transportation costs for all employees, which is about P20,000 a month is shouldered by the company.

If the Department of Agrarian Reform (DAR) approved the land use conversion filed by the HHIC Phil, the company will be able to provide housing projects which will involve the building of about 1,500 houses in a 30-hectare land situated 19 kilometers from the Hanjin Shipyard in Castillejos, Zambales. This is Hanjin’s response to the needs of shipyard workers which is part of its corporate social responsibility (CSR). Hanjin adds that the land will be provided by the company. With the houses in place, travel time to and from work will be minimized.

Hanjin through HACOR Phil, its catering company, also situated in the said shipyard, provides adequate meals for its entire employees, three times a day on a daily basis. This is truly most helpful for employees to bring more “bacon” at home for their families. Realizing the importance of the Philippine culture and practices at the workplace, Hanjin provided a series of Ethical Guideline Education for Koreans and foreign nationals who are working with their Filipino counterparts at the office and shipyard. Some of these include: eradication of physical harassment and minimizing cultural differences, special prevention of harassment during orientation time, and other various symposia concerning cultural barriers.

Hanjin assured DOLE that they will closely monitor its sub-contractors in the payment of social protection schemes such as the Social Security System (SSS) and PhilHealth payments of their respective employees. This will assure employees that they will be able to avail of health care services without hassle.

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Page last modified: 03-08-2012 19:21:33 ZULU