South Korea shipyard workers willing to end strike if lawsuits dropped
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South Koren minister Lee Jung-sik (left) talking with Mr Yoo Choi-ahn, who locked himself inside a cage-like structure at the Daewoo shipyard in Geoje, South Korea, on July 19, 2022.
PHOTO: REUTERS
SEOUL (REUTERS) - Contract shipyard workers striking at Daewoo Shipbuilding & Marine Engineering (DSME) are willing to end their strike and accept a wage increase offered by the company if lawsuits seeking damages from the strikers are dropped, a union official representing the strikers told Reuters on Thursday (July 21).
About 100 sub-contractors have occupied DSME's main dock in the south coast city of Geoje since last month demanding a 30 per cent pay increase, causing delays to deliveries of new vessels.
In recent negotiations, strikers said they lowered their demands to a gradual increase of 15 per cent, while DSME is holding firm at its offer of a 4.5 per cent rise.
Companies contracted to DSME and the strikers continued talks for more than 12 hours on Wednesday but failed to reach an agreement, as damage compensation demanded by the company and its subcontracting firms for losses due to the strike emerged as a key sticking point, according to the Korea Metal Workers’ Union (KMWU), which represents the strikers.
“Strikers expressed their intention to accept the 4.5 per cent wage hike offer if the issue regarding damage compensation lawsuits is resolved,” said Jang Seok-won, director of public relations at the KMWU.
The subcontracting companies had seemed willing to consider dropping the lawsuits seeking damages but subsequently changed their stance, the union official added.
DSME, which participated in previous negotiations, did not attend the Wednesday talks, the union added.
A DSME spokesperson declined to comment on details of the negotiations.
The union is scheduled to hold a press conference on Thursday afternoon.
South Korea's third-biggest shipbuilder has said the dispute cost it more than US$400 million (S$557.38 million) by mid-July.
South Korean President Yoon Suk-yeol on Thursday (July 21) urged contract shipyard workers at Daewoo Shipbuilding & Marine Engineering (DSME) to end their action as negotiations stalled amid disputes over wages and compensation for damages.
"Illegal actions should be resolved swiftly and normalised... for everyone's good," Mr Yoon told reporters in Seoul.
The construction of eight vessels at five docks at the shipyard is being hampered, with their delivery dates pushed back by two to five weeks as of Wednesday, the DSME spokesperson said.
