Korea to enhance working conditions for seafarers on labor shortage in industry

[Image source: Gettyimagesbank]

The South Korean government is taking immediate action to enhance employment conditions in the shipping industry to boost the income and welfare of Korean seafarers and restore their professional status.

The government plans to improve the treatment of national seafarers by increasing their paid vacation days to match those in developed countries and expanding the tax-free earned income.

The plan was unveiled by the Minister of Oceans and Fisheries during an emergency economic ministerial meeting held on Wednesday. The government’s initiative stemmed from the significant decrease in seafarers over time.

According to the ministry, the count of national seafarers plummeted from 58,818 in 2000 to 38,758 in 2010 and further declined to 31,867 last year. It represents a nearly 50 percent decrease over 22 years. The national seafarer population is aging, with 44 percent being 60 or older.

Seafarers also have a considerable turnover rate, as 78 percent of graduates from maritime colleges, universities, or vocational schools have transitioned to land-based jobs within five years.

There has been a rise in the number of mariners seeking employment on foreign vessels due to the allure of higher incomes facilitated by tax benefits. In recent years, Korean seafarers have been leaving for foreign ships due to the comparatively inferior treatment they receive compared to their counterparts overseas.

The highly competitive tuna fishing industry is currently facing a severe shortage of labor force as specialized workers, such as captains, have turned to Taiwan, 1the Philippines, and China, coupled with a decline in recruits and a decrease in the school-age population. The Korea Marine Officers’ Association warned that if the trend continues, around 600 out of the country’s 1,500 ocean ships will be unable to operate by 2032.

To minimize the workforce loss, the government will strive to enhance their treatment, including paid leaves and other economic benefits. The first step involves reducing the duration of service and increasing the number of paid vacation days to match the international average. Korean seafarers receive two months of vacation after six months on board. In Europe, seafarers receive three months of vacation after three months of service, while in Japan, they receive two months of vacation after four months of service.

In addition, the government will alleviate the tax burden that has been a major contributing factor to seafarer decline. The tax-free threshold on overseas earned income for seafarers on ocean ships and pelagic fishing vessels will be expanded from the current level of 3 million won ($2,341) per month. Experienced Korean seafarers with over 10 years of service pay 40 to 45 percent of their salary in taxes, resulting in a significant reduction in their disposable income compared to foreign seafarers. As to the issue, the ministry has been in talks with the Ministry of Economy anf Finance.

Additional efforts will be made to improve internet access on board ships, which has been often cited as a reason why young seafarers have been reluctant to be on board. Moreover, the country’s Seafarers’ Act will include provisions for human rights protection, such as preventing workplace harassment and ensuring the right to receive overdue wages, which applies to general workers.

The plan unveiled by the government encompassed an expansion of foreign skilled labor, as it has decided to extend support to four additional sectors: shipping, construction, fisheries, and resource recycling.

“To tap foreign labor, we will significantly raise the quota for skilled worker visas (E-7-4) from 5,000 to 35,000 in the second half of this year,” said Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho.