Aerospace Industry Prime and Subcontractors Win-Win Agreement: "Establishing Fair Trade Relations"

Fourth Collaboration Following Joseon, Petrochemical, and Automotive Industries
Joining Hands to Improve the Dual Structure of the Labor Market

The aerospace manufacturing industry is joining hands to improve the dual labor market structure, including the gap between primary contractors and subcontractors.

The Ministry of Employment and Labor, Hanwha Aerospace, Korea Aerospace Industries (KAI), and Gyeongsangnam-do held a "Joint Declaration Ceremony for the Expansion of Win-Win Cooperation in the Aerospace Manufacturing Industry" on the 14th at the Hanwha Group headquarters in Jung-gu, Seoul.

According to the joint declaration, the primary contractors will support subcontractors in securing skilled labor, improving working conditions, enhancing technological competitiveness, and establishing fair trade relationships, while subcontractors will participate in improving working conditions, strengthening capabilities, and research and development.

Minister of Employment and Labor Lee Jeong-sik is attending a meeting with American companies in Korea (AmCham) held at the Four Seasons Hotel in Jongno-gu, Seoul on the 18th, engaging in conversation with James Kim, Chairman of the American Chamber of Commerce in Korea, and other businesspeople. Photo by Kim Hyun-min kimhyun81@

The aerospace manufacturing industry involves a variety of parts and materials, resulting in subcontractors being distributed in stages, and most subcontractors are small-scale businesses with poor working conditions and a potential worsening labor shortage.

This win-win agreement to resolve the dual labor market structure is the fourth, following the shipbuilding, petrochemical, and automotive industries.

This agreement includes the participation of Gyeongsangnam-do, where 75% of the aerospace manufacturing industry is concentrated based on sales.

At the declaration ceremony, Minister of Employment Lee Jeong-sik said, "Win-win cooperation between primary and subcontractors cannot be resolved by regulation or force; it is sustainable only when voluntary cooperation is realized and becomes customary. We will activate multi-layered social dialogue at the central level to improve the dual structure."

Son Jae-il, CEO of Hanwha Aerospace, also stated, "With the spirit of 'Together Far,' we will take the lead in improving the regional dual structure through the win-win council and prepare and implement practical measures to enhance subcontractors' expertise and productivity in various areas."

KAI President Kang Gu-young emphasized, "As a leading company in the aerospace industry, we will fulfill our responsibilities for win-win cooperation as one team with the Ministry of Labor, local governments, primary contractors, and subcontractors."

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