KGM's Donghae factory, the largest single cement manufacturing facility in South Korea. [Provided by Korea Cement Association]
KGM's Donghae factory, the largest single cement manufacturing facility in South Korea. [Provided by Korea Cement Association]

The Ministry of Employment and Labor is partnering with Gangwon Special Self-Governing Province and cement industry prime contractors and subcontractors to build a cooperation model aimed at narrowing the gap between the two tiers. The initiative centers on expanding welfare benefits — including health screenings, long-service incentives and vacation allowances — to retain skilled workers and reduce disparities between contractors and subcontractors.

The ministry said Thursday it signed the "Agreement for Spreading Contractor-Subcontractor Cooperation in the Gangwon Cement Industry" in Chuncheon, with Gangwon Special Self-Governing Province, the Korea Cement Association, prime contractors Hanil Cement, KGM, Sampyo Cement and Halla Cement, and their subcontractors in attendance. The agreement is the fifth region-led cooperation model of its kind, following similar pacts in South Gyeongsang Province (aerospace), North Chungcheong Province (food), Incheon (petrochemical) and North Gyeongsang Province (auto parts).

The ministry said the pact is particularly significant as the first such region-representative industry cooperation model pursued in Gangwon Province, and the first case in which the Korea Cement Association — representing the sector as a whole — has directly participated in a cooperation investment.

The agreement covers four key tasks: building a cooperative governance structure involving contractors, subcontractors, the region and the government; protecting workplace safety and workers' health rights; improving treatment and expanding welfare for skilled incumbent workers; and pursuing the joint growth of the region and the industry. Prime contractors agreed to form a consultative body with subcontractors and the government to discuss ways to close the gap and jointly secure the funding needed to carry out those measures.

Up to 250,000 won ($169) per person will go to 500 subcontractor workers to cover comprehensive health screenings, follow-up examinations and vaccinations against shingles and influenza. Long-service incentives of 1 million to 2 million won will be paid to 230 workers based on years of service, and the agreement also provides for vacation allowances (700 workers), support for obtaining professional certifications (150 workers), children's education expenses (240 workers) and club activity funds (15 teams).

The agreement also calls for prime contractors and subcontractors to expand joint safety inspections and safety education, cooperate on strengthening occupational health and safety infrastructure, and work continuously to promote long-term retention of skilled workers, improve working conditions and expand employee benefits. The ministry and Gangwon Province agreed to back the initiative by linking relevant policies and support projects.

"Today's agreement opens a forum where contractors and subcontractors can sit down together and talk, and it is significant that prime contractors have begun directly hearing the voices of subcontractor workers in high-risk, high-intensity workplaces," Minister of Employment and Labor Kim Young-hoon said. "We will actively provide policy support so that this model can lead to real change across the labor market, beyond any single industry or region."


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