📖 Your Q2 Earnings Guide: Discover the Stocks ProPicks AI Highlights to Jump Post-EarningsRead more

Striking S.Korea shipyard workers in talks to end siege, deliveries delayed

Published 07/19/2022, 11:44 PM
Updated 07/20/2022, 02:22 AM
© Reuters. Members of the subcontractor union chant slogans on the floor of the occupied oil tanker during a strike at Daewoo Shipbuilding & Marine Engineering in Geoje, South Korea, July 19, 2022. The sign reads "We can't live like this". Yonhap via REUTERS
NG
-

By Byungwook Kim

SEOUL (Reuters) -Striking contract workers and Daewoo Shipbuilding & Marine Engineering (DSME) have made some progress in talks over wage hikes, the two sides said on Wednesday, seeking to avoid the use of force to end a siege of the shipyard.

About 100 sub-contractors have occupied DSME's main dock in the south coast city of Geoje since last month demanding a 30% pay increase, halting work at the yard that the company has said have led to delivery delays.

DSME and the Korean Metal Workers' Union, which represents the strikers, said the two sides have been talking to narrow a difference over proposed pay increases, with the striking workers lowering their demand to 15%.

Union officials told Reuters on Wednesday the company is refusing to budge on its offer of a 4.5% pay increase. A DSME spokesperson declined to discuss details of the negotiations. A new round of talks was scheduled for Wednesday.

The fresh round of talks come as conservative President Yoon Suk-yeol's government raised pressure on the strikers, calling the siege illegal and unacceptable and saying it was causing "tremendous damage" to an industry at a critical time on its path to recovery.

The contract workers launched the sit-in last month at the main dock of the country's third biggest shipbuilder demanding a pay rise to make up for cuts in recent years when the industry struggled to survive a global slump. Since then orders have gradually recovered, thanks to pent-up demand from the pandemic.

© Reuters. South Korea's Employment and Labor Minister Lee Jung-sik talks with Yoo Choi-ahn, vice chief of the subcontractor union, who is locked inside a steel cage-like structure that he welded himself on the floor of the occupied oil tanker, during a strike at Daewoo Shipbuilding & Marine Engineering in Geoje, South Korea, July 19, 2022. The sign reads

The construction of eight vessels at five docks at the shipyard is being hampered, with their delivery dates pushed back by two to five weeks as of Wednesday, including a vessel that had been scheduled for delivery in December, the DSME spokesperson said.

DSME said it had won orders for 18 liquefied natural gas (LNG) carriers this year and its order book was full for the next three years, which could help the loss-making shipbuilder return to profit.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.