DSME strike condemned as economic threat by government

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DSME strike condemned as economic threat by government

From left, ustice Minister Han Dong-hoon and Interior and Safety Minister and Lee Sang-min, Finance Minister Choo Kyung-ho, Employment and Labor Minister Lee Jung-sik and Trade, Industry and Energy Minister Lee Chang-yang issue a statement condemning the DSME strike at the government complex in Seoul on Monday. [YONHAP]

From left, ustice Minister Han Dong-hoon and Interior and Safety Minister and Lee Sang-min, Finance Minister Choo Kyung-ho, Employment and Labor Minister Lee Jung-sik and Trade, Industry and Energy Minister Lee Chang-yang issue a statement condemning the DSME strike at the government complex in Seoul on Monday. [YONHAP]

A 46-day strike at a shipyard has been condemned by the government as a threat to the economy at the worst possible time.  
 
"The risks are increasing with inflation and high interest rates," Finance Minister Choo Kyung-ho said in statement on Monday, adding that it is difficult to project when it will end.
 
He said now is the time to focus entirely on reviving the economy and not the time to quarrel.  
 
Daewoo Shipbuilding & Marine Engineering (DSME) subcontractors have been on strike since June 2. The 150 members of the Korea Metal Workers union have been demanding improvements in working conditions, a 30 percent wage increase and 1-year contracts.
 
"The government will have no other choice but to strictly apply the law," Choo said.  
 
"Since 2015, the government has committed 7.1 trillion won ($5.2 billion) of tax payer money to restructure the shipbuilder, which has struggled from global crises and accounting fraud," Choo said. But DSME "is still struggling with a debt-to-asset ratio of over 500 percent and a 470 billion won deficit in the first quarter.  
 
"The shipbuilder is in desperate situation," Choo said. "It is an irresponsible action that could destroy the trust in the Korean shipbuilding industry.
 
"Illegal acts will be handled strictly according to law and principle."
 
On Monday, Prime Minister Han Duck-soo held a meeting with five ministers — Finance Minister Choo Kyung-ho, Trade, Industry and Energy Minister Lee Chang-yang, Employment and Labor Minister Lee Jung-sik, Justice Minister Han Dong-hoon and Interior and Safety Minister and Lee Sang-min.  
 
The ministers gathered hours after President Yoon Suk-yeol ordered them to take more aggressive action in resolving the situation.  
 
According to the President's office, President Yoon told Prime Minister Han during their weekly meeting early Monday that "the rule of law" has to be applied against illegal strikes.  
 
President Yoon noted that the strike will have an impact on the industry and the economy. 
 
The government estimates the loss caused by the strike at roughly 570 billion won.  
 
The subcontractors argue that they are paid between 1 and 2 million won a month, which is almost the same as minimum wage, despite the shipbuilding industry thriving.  
 
The workers have asked the state-owned Korea Development Bank (KDB), which owns 55 percent of DSME, and DSME to take the lead in the negotiations.  
 
On June, Yoo Choi-ahn, vice chief of the union on strike, welded a steel cage-like structure to the floor of the occupied oil tanker at the shipbuilder's dry dock at DSME's Okpo shipyard, on Geoje Island, South Gyeongsang and locked himself in the cage, bringing the construction to a halt.
 
Six other workers have stationed themselves elsewhere in the structure.  
 
On Friday, the Changwon District Court accepted a request for an injunction against the workers filed by the shipbuilder and warned that the workers will have to pay 3 million won for each day of the strike unless they end the occupation.  
 
The EU in January rejected a merger between DSME and Hyundai Heavy Industries citing monopoly in liquefied natural gas carriers.  
 
In the first quarter, DSME reported a 491.8 billion won net loss.
 
According to the Ministry of Trade, Industry and Energy, in the first half, Korea ranked No.1 by global orders. In the first half, Korea received 45 percent of all orders.

BY LEE HO-JEONG [lee.hojeong@joongang.co.kr]
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