April 24, 2024
Industrials
DSME labor union accepts pay cut
[THE INVESTOR] The labor union of embattled Daewoo Shipbuilding & Marine Engineering said on March 24 that it is willing to accept a proposed pay cut for workers aimed at helping the shipyard stay afloat.
The labor union’s action came a day after state-run creditors of the shipyard, the world’s largest by order backlog, announced a fresh rescue package worth 6.7 trillion won (US$5.98 billion) to the ailing shipbuilder, but only if all stakeholders agree to a painful debt-equity swap plan.
The huge rescue measures, proposed by the state-run Korea Development Bank and Export-Import Bank of Korea, are the second round of bailout for the shipbuilder that has been suffering severe liquidity problems over heavy losses from offshore projects.
DSME will be required to cut 25 percent of its personnel costs and slash its workforce by 1,000 jobs, the creditors said.
The fresh rescue package also calls for the labor union not to stage a strike.
“Recently, we have been informed of a 10 percent pay cut from the management, and we do acknowledge that there are some justifiable reasons for that. However, we believe it is imperative that the labor union and the management should sit together to discuss how to handle it,” said the union in a statement.
By Alex Lee and newswires (alexlee@heraldcorp.com)
The labor union’s action came a day after state-run creditors of the shipyard, the world’s largest by order backlog, announced a fresh rescue package worth 6.7 trillion won (US$5.98 billion) to the ailing shipbuilder, but only if all stakeholders agree to a painful debt-equity swap plan.
The huge rescue measures, proposed by the state-run Korea Development Bank and Export-Import Bank of Korea, are the second round of bailout for the shipbuilder that has been suffering severe liquidity problems over heavy losses from offshore projects.
DSME will be required to cut 25 percent of its personnel costs and slash its workforce by 1,000 jobs, the creditors said.
The fresh rescue package also calls for the labor union not to stage a strike.
“Recently, we have been informed of a 10 percent pay cut from the management, and we do acknowledge that there are some justifiable reasons for that. However, we believe it is imperative that the labor union and the management should sit together to discuss how to handle it,” said the union in a statement.
By Alex Lee and newswires (alexlee@heraldcorp.com)
![[Exclusive] Korean military set to ban iPhones over 'security' concerns](http://res.heraldm.com/phpwas/restmb_idxmake.php?idx=151&simg=/content/image/2024/04/23/20240423050599_0.jpg)
![[Herald Interview] Bridging Korea, Philippines for better future](http://res.heraldm.com/phpwas/restmb_idxmake.php?idx=151&simg=/content/image/2024/04/23/20240423050735_0.jpg)
