BUSINESS

Workers oppose Hyundai Heavy-DSME merger plan

By Shin Ji-hye
  • Published : Feb 18, 2019 - 15:09
  • Updated : Feb 18, 2019 - 15:09

The merger plan between Hyundai Heavy Industries and Daewoo Shipbuilding & Marine Engineering is facing opposition from workers of the two firms, who say it would lead to possible technology leaks and restructuring.

A labor union of Daewoo Shipbuilding & Marine Engineering said Monday it has started voting on whether to go on a strike over the acquisition by Hyundai Heavy Industries. 

(Yonhap)


The voting involves 5,611 workers at its shipbuilding plants in Okpo, a neighborhood in the city of Geoje in South Gyeongsang Province. It began at 6:30 a.m. Monday and ends at 1 p.m. Tuesday.

Separately, the union is slated to protest at the Korea Development Bank -- the largest shareholder of DSME with a 55.7 percent stake -- this week and to hold press briefings.

“We will ward off the KDB’s due diligence on DSME with all methods, as all of the technologies of the company will be leaked during the period and we are fighting for our right to live,” said a spokesperson of the union.

The labor union of Hyundai Heavy Industries is also opposing the acquisition on the grounds of possible restructuring, citing redundant manpower in design, sales and research if the two companies merge.

“Workers, who have feared for their job security in the past years, again have to be concerned about restructuring due to the acquisition,” said the union of Hyundai Heavy Industries.

On Tuesday last week, the KDB announced it had confirmed Hyundai Heavy Industries as the buyer of DSME. The KDB will hold a board meeting in March, and if the board of directors approves, the deal will be closed after due diligence. 

By Shin Ji-hye (shinjh@heraldcorp.com)


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