[Factories Are Aging] Even Large Corporations Can't Escape 'Workforce Aging'

Imported cars are waiting to be shipped at Pyeongtaek Port, viewed from a Seoul Metropolitan Police Agency helicopter on the 10th, one day before the Lunar New Year holiday./Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Yu Je-hoon] Even large corporation factories are not exempt from the trend of ‘aging workforce.’ The top-heavy employment structure of large corporation factories, combined with changes in industrial trends, raises concerns that the aging of the workforce on site could lead to a ‘vicious cycle.’

According to Hyundai Motor Company's Sustainability Management Report on the 24th, as of last year, the number of employees aged 50 and over at Hyundai Motor was 31,523, accounting for 44.7% of the total. The proportion of elderly workers aged 50 and above has steadily increased every year, from 40.4% in 2018 to 42.9% in 2019.

A similar phenomenon appears in POSCO’s Corporate Citizenship Report. As of 2019, the proportion of workers aged 55 and above was 19.9%, showing an increasing trend from 16.3% in 2017 and 18.7% in 2018.

On the other hand, the middle age group is decreasing. At Hyundai Motor, the proportion of workers aged between 30 and under 50 decreased from 50.2% in 2018 to 45.8% last year, and POSCO also saw a decline in the 30 to under 55 age group from 68.2% in 2017 to 63.7%. The proportion of workers under 30 remained steady at 9.4% (2020) and 16.3% (2019), respectively.

This aging trend is not just a concern for some large corporations. According to a 2018 survey conducted by the Korean Metal Workers’ Union of the Korean Confederation of Trade Unions (KCTU) targeting workplaces with over 300 union members, the largest proportion by generation was workers in their 50s at 39.24%. This significantly outnumbered those in their 40s (31.49%), 30s (21.7%), and 20s (5.95%). Considering that major domestic chimney industries’ unions are members of the Metal Workers’ Union, this indicates a clear aging trend in large corporation factories as well.

The problem is that this top-heavy structure perpetuates a vicious cycle. In workplaces dominated by middle-aged and older workers, calls for legislation to extend the retirement age are growing, while new hiring is gradually shrinking due to changes in the industrial ecosystem.

Hyundai Motor is a representative case. Recently, the Hyundai Motor union, along with the Kia and Korea GM unions, demanded legislation to extend the retirement age to 65. On the other hand, with the industrial trend toward electric vehicles (EVs) that require less labor becoming more prominent, Hyundai Motor has not conducted separate new regular production worker recruitment for several years.

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