DSME sues leaders of labor union for 47 billion won after strike

Industry

Published: 26 Aug. 2022, 18:13 Updated: 26 Aug. 2022, 18:44

DSME sues leaders of labor union for 47 billion won after strike

Union members of Daewoo Shipbuilding & Marine Engineering's subcontractors shout slogans during a sit-down strike on July 20. [YONHAP]

Daewoo Shipbuilding & Marine Engineering (DSME) announced Friday that it has filed a 47-billion-won ($35.3 million) damage claim suit against the leaders of a labor union.

DSME said it had filed the suit in order to prevent the recurrence of strikes, and that it has limited the subjects of the suit to the leaders of the subcontractor union with the aim of building constructive labor-management relations and mutual future-oriented cooperative relations.

The company explained that due to the 51-day strike and occupation of its shipyard in Geoje, South Gyeongsang, which ended on July 22, the building of ships was suspended for a significant period of time, resulting in financial losses. Damages were primarily related to the cost of mobilizing labor and equipment, investments in recovery and losses due to delays in payments and the delivery of ships.

DSME said damages difficult to assess have not been included.

“For damages that were not calculated into the value of this lawsuit, we will consider expanding or changing the claim if necessary when it becomes possible to calculate the amount,” said a spokesperson for DSME.

The shipbuilder is estimated to have suffered losses amounting to 800 billion won during the strike.

In the first quarter of this year, DSME reported a 13 percent increase in revenue to 1.25 trillion won, but a net loss of 491.8 billion won.

BY LIM JEONG-WON [lim.jeongwon@joongang.co.kr]