Daewoo Shipbuilding Subcontractor Labor-Management Agree on 4.5% Wage Increase and Employment Succession... Compensation Lawsuit Issue 'Unresolved' (Comprehensive)

On the 22nd, when the subcontractor labor-management negotiations at Daewoo Shipbuilding & Marine Engineering were dramatically settled, Kwon Soo-oh, CEO of Noksan Enterprise (left), and Hong Ji-wook, Vice Chairman of the Metal Workers' Union, held hands toward the press at Daewoo Shipbuilding & Marine Engineering Okpo Shipyard in Geoje-si, Gyeongnam.
[Image source=Yonhap News]

[Asia Economy (Geoje) = Reporter Jeong Dong-hoon] The subcontracted labor union of Daewoo Shipbuilding & Marine Engineering (DSME) reached an agreement 31 days after occupying Dock 1 at Okpo Shipyard. It has been 51 days since the strike began.

On the 22nd, the subcontracted labor union stated, "We agreed on a 4.5% wage increase," and "We agreed to continue employing workers who are currently working at companies that closed after the strike." In addition, they promised to pay 500,000 KRW for Lunar New Year and Chuseok holiday bonuses and 400,000 KRW for summer vacation bonuses.

However, the issue of the lawsuit for damages, which was the biggest point of contention in the negotiations, remained unresolved. Hong Ji-wook, Vice Chairman of the Metal Union of the Korean Confederation of Trade Unions (KCTU), said, "We did not reach an agreement on the company's abandonment of the damage claims," adding, "We left this as a remaining task to resolve the serious situation. We must sincerely continue negotiations going forward."

It is interpreted that the government's strong determination against the illegal strike, the police's consideration of deploying public authority, and the creditor KDB Industrial Bank's bankruptcy scenario card exerted comprehensive pressure. It appears that both labor and management made some concessions due to the crisis awareness that it could lead to mutual destruction.

Although the labor-management negotiations were settled, DSME is expected to bear damages of at least 800 billion KRW, and the credibility of K Shipbuilding has been significantly damaged, so the aftermath is expected to be considerable.

The subcontracted labor union concluded the negotiations around 1:30 PM on the 22nd after several recesses and resumptions of talks. However, both sides announced that they did not reach an agreement on the issue of damage claims during the strike process, which was the biggest obstacle in this negotiation, specifically regarding civil and criminal immunity.

The Geoje-Tongyeong-Goseong Shipbuilding Subcontracted Branch of the Metal Union affiliated with the Korean Confederation of Trade Unions (KCTU) went on strike from the 2nd of last month, demanding a 30% wage increase and recognition of full-time union officials. From the 22nd of last month, they began a sit-in protest occupying Dock 1 at Okpo Shipyard. The company estimates losses exceeding 800 billion KRW due to this.

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