The labor union of the construction division at Samsung C&T has requested a change to the hardship allowance classification for Middle East sites and hazard pay for employees working on site. With instability in the Middle East persisting as the war drags on, the union called for management to respond. Strengthened support for employees at Middle East sites by peers such as Samsung E&A and GS Engineering & Construction also appears to have influenced the request.
According to the construction industry on the 21st, the union of Samsung C&T's construction division sent a letter to the CEO the previous day titled "Request for hazard pay for employees at Middle East sites." In the letter, the union said, "To boost morale among employees working in the Middle East, we have formally requested multiple times that the company change the hardship classification or pay hazard allowances, referring to examples from affiliates and other companies," and added, "However, the company has not taken any official action to date, citing the absence of a responsible decision-maker with authority."
The union said, "We urge the CEO, the top decision-maker, to make a prompt decision directly," and added, "The union firmly believes the CEO will not turn away from the legitimate demands of employees who are braving all these risks and working around the clock on site."
As employees voiced that support for on-site staff should be strengthened amid rising instability in the Middle East, the union is said to have sent this letter to management. The United States and Iran are holding cease-fire talks, but concerns about damage in Middle Eastern countries remain high.
Samsung C&T has dispatched about 200 employees to Saudi Arabia, the United Arab Emirates (UAE), and Qatar. Samsung C&T grades overseas sites by risk level or regional classification, but the Middle East classifications are reportedly being maintained at the previous levels even after the outbreak of the U.S.-Iran war. Because of this, employees are demanding an upgrade to the Middle East classifications and hazard pay in line with the higher on-site risk.
Samsung C&T began drawing up measures after receiving the union's letter. A Samsung C&T official said, "We have received the union letter and will finalize a comprehensive plan to support employees after review."
Construction companies are expanding support for employees as the Middle East war continues. GS Engineering & Construction raised overseas allowances to the top classification level at the end of last month according to country-specific risk in the Middle East, and decided to provide residence hotels where families can stay temporarily if an employee working with family accompaniment returns to Korea. GS Engineering & Construction CEO Huh Yoon-hong personally reassured employees at overseas sites by sending a message saying, "Under any circumstances, the company will place the highest priority on the safety of all employees and will proactively implement all necessary measures."
Samsung E&A also decided to raise allowances for employees dispatched to the Middle East. Daewoo Engineering & Construction is discussing additional subsistence payments through labor-management talks and has provided paid leave and vouchers for gift cards and resort facilities.
Beyond individual company measures, the government, together with organizations such as the International Contractors Association of Korea, is operating a joint emergency response team for the Middle East situation and discussing evacuation plans by corporation and future responses. An official at the Ministry of Land, Infrastructure and Transport (MOLIT) said, "We are continuously monitoring the damage and evacuation status of our corporations and are working with related agencies to ensure worker safety and protect corporations."