April 26, 2024

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Workers at Daewoo Shipbuilding & Marine Engineering voted on Feb. 19 to strike to oppose Hyundai Heavy Industries’ proposed takeover, its labor union said.

The approval for the proposed strike heralds a bumpy road for a mega deal between HHI and the state-run Korea Development Bank.

Over 90 percent of the 5,600-member union voted for the walkout, according to the union.

The union said it will decide later when its members will go on a strike.

Early this month, HHI, the world’s largest shipyard by sales, and the policy lender KDB said they would sign a formal deal on DSME early next month.

KDB is DSME’s main creditor, with a 55.7 percent stake in the company.

The labor unions at HHI and DSME fiercely opposed the deal, claiming it could lead to massive layoffs.

If the takeover goes ahead as planned, the Korean shipbuilding industry is expected to be dominated by two major shipbuilders -- HHI and Samsung Heavy.

By Ram Garikipati and newswires (ram@heraldcorp.com)