Strike at Daewoo Shipbuilding & Marine Engineering causing huge tangible and intangible losses

July 19, 2022

Daewoo Shipbuilding & Marine Engineering is suffering huge losses due to the ongoing strike by subcontract workers

Daewoo Shipbuilding & Marine Engineering (DSME) subcontract workers are continuing with their strike in Geoje, Tongyoung and Goseong and the company’s resultant losses are estimated at 992 billion won. According to DSME, the delayed launching of ships attributable to the strike has led to a daily sales loss of 26 billion won along with a daily fixed cost loss of 6 billion won.

At present, the strike is threatening the livelihood of a large number of employees and an increasing number of subcontractors are failing to survive. Three went under last month and four decided to do so this month.

At the same time, foreign clients have sent supervisors to the strike sites to collect strike videos. It is said that the foreign shipowners are preparing to get contract breach penalties. News on the strike is spreading fast, resulting in a decline in trust in South Korean shipbuilders in general.

“It is said that the union of subcontract workers in the industry will aim at Hyundai Heavy Industries once their demands are met at DSME,” said an industry source, adding, “The Hyundai Heavy Industries union recently called for the company to give better treatment to subcontract workers.”

Source: BusinessKorea