Daewoo Shipbuilding Management: "We Will Create a New Win-Win Model for Contractors... Taking Responsibility After Overcoming the Crisis"

Executive Apology Statement Announcement

[Image source=Yonhap News]

[Asia Economy Reporter Oh Hyung-gil] The management of Daewoo Shipbuilding & Marine Engineering (DSME) apologized for the recent illegal strike by the subcontractor union and announced plans to create a new win-win cooperation model between primary and subcontractors.

On the 26th, DSME management stated in an apology letter, "The strike by the Metalworkers' Union Geoje·Tongyeong·Goseong Shipbuilding Subcontractor Branch and the illegal occupation of Dock 1 caused a serious production halt, causing great concern and worry to society and the public. We deeply regret this incident and sincerely bow our heads to apologize to the people."

They explained, "The 51-day-long subcontractor union strike caused an unprecedented situation where the launching of vessels at Dock 1, the world's largest ship production facility owned by our company, was delayed by five weeks. This resulted in massive losses including a significant decrease in sales and fixed cost losses. Not only the company but also hundreds of thousands of workers and their families, including employees of our company, partner companies, and equipment suppliers, experienced extreme anxiety."

They continued, "Although this left a deep wound on the industry and national economy, the crisis that concerned all citizens was avoided through dialogue and mediation, culminating in a dramatic negotiation settlement on the 22nd, bringing this incident to a close. This was possible thanks to the interest and concern of the public and the dedicated efforts of various stakeholders including the government. We sincerely thank everyone who worked hard for our company."

In particular, they said, "Each partner company, as the negotiating party, consistently made every effort to resolve issues through dialogue and compromise, responding strictly according to laws and principles. We will continue to uphold these principles," and announced plans to establish fundamental improvement measures and a win-win cooperation model between primary and subcontractors.

Furthermore, they emphasized, "We will unite all members to minimize damage caused by production delays and actively resolve conflicts through internal communication. We will swiftly restore and strengthen customer trust through active new contract activities with domestic and international shipping companies, and continue operating an emergency management system to do our best to normalize management and achieve order targets."

They added, "We will devote all efforts to normalizing the company as soon as possible and regaining public trust. All management will take responsibility, including their positions, to overcome this crisis quickly."

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