STX Shipbuilding & Offshore, Voluntary Retirement Offered to All Employees

[Asia Economy Reporter Hwang Yoon-joo] STX Shipbuilding & Marine Engineering announced on the 29th that it will implement voluntary retirement for all employees due to the impact of strikes and the novel coronavirus disease (COVID-19).

STX Shipbuilding & Marine Engineering stated through an internal newsletter on the same day, "To restore the company's competitiveness, significant fixed cost reductions are necessary, so we are implementing voluntary retirement."

The company explained, "Following the creditors' voluntary agreement in 2013, rehabilitation procedures in 2016, and the conditional management normalization agreement based on a high-intensity self-rescue plan with KDB Industrial Bank in May 2018, despite long-term self-rescue efforts, we are once again forced to implement a high-intensity self-rescue plan due to worsening orders and profitability."

It added, "Some mention the special employment support system for the shipbuilding industry, but considering the company's circumstances, it is difficult to secure competitiveness without reducing fixed costs themselves. Temporary support for six months is not a long-term solution and could lead to even more difficult outcomes next year, so it is unacceptable."

Under the special employment support system for the shipbuilding industry, if included in the employment retention support target, the government supports 66% of the subsidy up to a limit of 1.98 million KRW per month for a maximum of six months. The remaining 34% is borne by Gyeongsangnam-do at 5% and the employer at 29%.

The company emphasized, "Despite the difficult management environment, we will mobilize all available budgets to prepare consolation money and implement voluntary retirement," adding, "If the current difficult environment continues, we will have no choice but to continue tightening our belts."

This content was produced with the assistance of AI translation services.