Daewoo Shipbuilding & Marine Engineering Offers Voluntary Retirement

[Asia Economy Reporter Park So-yeon] Daewoo Shipbuilding & Marine Engineering (DSME) is implementing workforce reductions through voluntary retirement again this year.

DSME announced on the 13th that it is accepting voluntary retirement applications until the 25th from office and production workers born before 1975.

Applicants will receive severance pay and reemployment support funds based on the remaining period until retirement age. Severance pay ranges from 6 to 33 months of regular wages for those born between 1961 and 1965, and 50% of the remaining period's wages for those born between 1966 and 1975. Additionally, a reemployment support fund of 12 million KRW will be provided.

DSME also accepted voluntary retirement applications last January from employees with less than 10 years remaining until retirement.

The company explained that the voluntary retirement is a proactive response to sluggish order intake.

Due to the prolonged shipbuilding industry downturn over several years, Daewoo Shipbuilding has failed to meet its order targets in recent years.

Last year, amid the ongoing impact of COVID-19, the company secured orders worth $5.41 billion, reaching only 75% of its target of $7.21 billion.

The Metalworkers' Union Daewoo Shipbuilding branch opposed the move, stating that "the company is using voluntary retirement as a pretext for restructuring."

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