KCCI "Daewoo Shipbuilding & Marine Engineering Illegal Strike, Public Authority Must Take Action"

Statement on the Matter
"Greater Harm to the People and Economy"

[Asia Economy Reporter Kiho Sung] The Korea Employers Federation (KEF) condemned the labor union for occupying the dock and ships under construction, which are core facilities of the Daewoo Shipbuilding & Marine Engineering (DSME) shipyard, and stated, "The government should not only emphasize autonomous resolution between labor and management in the face of existing illegal acts but must also exercise public authority to prevent further significant damage to the national economy caused by these illegal activities."

On the 17th, KEF said in a statement, "The company is incurring daily losses of approximately 31.6 billion KRW in sales and fixed costs, resulting in a cumulative loss of about 600 billion KRW to date."

The Korean Metal Workers' Union (KMWU) Geoje-Tongyeong-Goseong Shipbuilding Subcontractors Branch of the Korean Confederation of Trade Unions (KCTU) has been illegally occupying the dock and ships under construction, which are core facilities of the DSME shipyard, since June 22, demanding a 30% wage increase and collective bargaining.

KEF explained, "Our shipbuilding industry has long suffered from shipping market downturns, intensified international competition, rising raw material prices, and a high-wage, low-efficiency structure. However, this year, there has been a prospect of turning a profit due to orders focused on high value-added vessels such as LNG carriers." It added, "Recently, with the Qatar project orders being officially placed, DSME has achieved 99.4% of its annual order target in about six months, raising expectations for business recovery."

It continued, "However, the illegal occupation and extreme illegal acts by the subcontractors' union members are attempting to nullify DSME's efforts to recover its business. If the dock is paralyzed, not only will that process be affected, but production disruptions will inevitably occur in both preceding and subsequent processes." It pointed out, "The damage will affect not only the primary contractor but also numerous partner companies and workers. In shipbuilding, where trust with shipowners is crucial, delays in ship delivery due to production disruptions will lead to a decline in external credibility and, in the long term, cause significant damage to the international competitiveness of the shipbuilding industry."

KEF also urged, "We call on DSME, its partner companies' employees, and local residents to end the illegal occupation, normalize production activities, and resolve the issue through dialogue." It emphasized, "Contrary to these hopes, the subcontractors' illegal occupation continues. Especially with the KMWU's general strike on July 20 and attempts to politicize the labor issue, if the illegal occupation prolongs, it could cause irreparable damage not only to the primary and subcontracting companies and workers but also to the regional economy."

KEF concluded, "The business community urges the subcontractors' union to immediately cease illegal acts that cause enormous damage to our shipbuilding industry and economy, return to work promptly, and resolve issues through dialogue."

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