Creditors of Daewoo Shipbuilding & Marine Engineering Co. on Tuesday pressed the embattled shipbuilder's workers to refrain from going on strike, saying that a potential walkout would deter the ongoing efforts to salvage the financially shaky firm.
The move came as 85 percent of some 7,000 unionized workers at Daewoo Shipbuilding voted for a strike earlier in the day, according to the labor union. They have claimed that the shipbuilder's restructuring schemes submitted to creditors only calls for the workers to suffer.
"We will continue to consult with Daewoo Shipbuilding in order to prevent unionized workers from going on strike," said the creditors. "If they really walk out, we cannot help but stop our assistance to the shipbuilder."
The labor union also said the passage of the proposed strike does not mean an immediate action. "We propose creating a consultation body with creditors and the management to avert a strike," it said.
Last year, Daewoo Shipbuilding's creditors provided 4.2 trillion won ($3.58 billion) in financial aid in exchange for its workers not going on a strike. Since August of last year, the creditors, led by state-run Korea Development Bank, have provided 3.2 trillion won in financial help to the shipbuilder.
Last week, the shipbuilder mapped out a 5.3 trillion won self-rescue plan, approved by its creditors, which includes asset sales and the spin-off of key business units.
South Korean shipbuilders, including Daewoo Shipbuilding, have been under severe financial strains in the face of falls in new orders amid a protracted slump in the world's economy. (Yonhap)