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Workers at Samsung, Hyundai, Daewoo shipyards to stage strike this week

By 박윤아
Published : July 18, 2016 - 10:18
[THE INVESTOR] The workers at major shipbuilders are set to stage a joint strike this week, calling for an end to tough restructuring moves currently underway.

According to the sources, unionized workers at the country’s big three shipyards -- Hyundai Heavy Industries, Daewoo Shipbuilding & Marine Engineering and Samsung Heavy Industries -- and five other smaller shipbuilders plan to launch a partial strike for four hours on July 18.


Samsung Heavy's shipyard in Geoje / The Investor


An estimated 30,000 workers may join the walkout, the sources said.

Samsung Heavy workers already staged a partial strike last week. Workers at Hyundai Heavy and Daewoo Shipbuilding approved a strike proposal.

South Korean shipbuilders have been under severe financial strain since the 2008 global economic crisis that sent new orders tumbling amid a glut of vessels and tougher competition from Chinese rivals.

The country’s top three shipyards suffered a combined operating loss of 8.5 trillion won (US$7.40 billion) last year due largely to increased costs stemming from a delay in the construction of offshore facilities and an industry-wide slump, with Daewoo Shipbuilding alone posting a 5.5 trillion won loss.

The shipbuilders have recently drawn up sweeping self-rescue programs worth 10.35 trillion won in a desperate bid to overcome a protracted slump and mounting losses.

Meanwhile, workers at Hyundai Motor, the country’s top automaker, are set to go on a partial strike on July 19, and may extend it to July 21, demanding a pay raise and better working conditions.

(theinvestor@heraldcorp.com)

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