877 Domestic Construction Companies Receive Grade 1 in Construction Worker Employment Evaluation

[Asia Economy Reporter Yoo In-ho] A total of 877 domestic construction companies received a Grade 1 rating in the Construction Worker Employment Evaluation.

The Ministry of Land, Infrastructure and Transport announced the 2020 evaluation results of the "Construction Worker Employment Evaluation," which assesses construction companies' efforts to improve the treatment of construction workers.

This is the first evaluation since the amendment of the Construction Industry Basic Act introduced in December last year. Based on the proportion of regular employees, companies with improved evaluations compared to 2018 were assigned grades 1 to 3.

The evaluation was calculated primarily based on the ratio of regular employees to total workers, with an additional 10% each for the new hiring rate and the new hiring rate of youth (under 29 years old). As a result, among companies with positive employment evaluation scores, grades 1 to 3 were assigned in order of highest scores: Grade 1 for the top 30%, Grade 2 for the 30% to less than 70%, and Grade 3 for 70% and above.

Out of 4,340 companies that applied for this evaluation, 2,174 companies (50.1%) received grades 1 to 3, and among them, 877 companies (20.2%) achieved Grade 1. Meanwhile, 2,166 companies whose regular employment situation did not improve compared to 2018 and whose employment evaluation scores declined did not receive any grade in this evaluation.

Starting from next year's evaluation, construction companies that receive grades 1 to 3 will be granted benefits such as a 3 to 5% increase in construction performance scores during the construction capability evaluation.

Meanwhile, looking at the employment status of the applying companies, the regular employment rate increased by 1.7 percentage points from 55,031 (57.4%) in 2018 to 57,555 (59.1%) in 2019. Larger construction companies tended to have higher regular employment rates.

Joo Jong-wan, Director of the Construction Policy Division at the Ministry of Land, Infrastructure and Transport, said, "Since the employment evaluation results will be reflected in the construction capability evaluation starting next year, we expect more construction companies to participate in the employment evaluation." He added, "We will continue to improve and reflect the evaluation to more precisely assess the employment status of construction workers and the welfare improvement efforts of construction companies, thereby encouraging active employment improvement efforts by construction companies."

This content was produced with the assistance of AI translation services.