The Korea Metal Workers’ Union (KMWU), which represents shipyard workers in South Korea, has joined Daewoo Shipbuilding & Marine Engineering’s (DSME) striking subcontractors, threatening to fight back should the government or police physically intervene.
The workers have refused to stop the strike, despite the Changwon District Court granting an injunction (sought by DSME) on 16 July to cease the industrial action.
As the strike nears the two-month mark, President Yoon Suk-yeol is threatening punitive action, which has drawn criticism from the union, which urged the newly elected president not to disappoint voters.
Today (21 July), Yonhap News, citing police sources, reported that the South Korean police are considering mobilizing personnel to break up the strike, which began on 2 June.
President Yoon also told journalists today that the South Korean people want to see a quick end to the strike, and ceasing the industrial action will help everyone.
However, President Yoon’s stance appears to have hardened the shipyard workers instead.
Citing rising living costs due to inflation, the militant workers initially demanded that DSME increase their wages by 30%. However, there has been a stalemate as DSME, majority controlled by the government through a 55.7% stake held by the Korea Development Bank, is offering an increment of just 4.5%.
This week, 3,000 members attended a rally to support the 120 DSME subcontractors who have refused to work. The situation has cost DSME losses of over US$458 million as vessel deliveries are delayed, and the subcontractors have planted themselves in some of the ships under construction to prevent non-striking colleagues from working on the vessels. Dismayed at the workers’ resistance, DSME’s labour union is reportedly considering separating from the KMWU.
Although many container ship orders were won amid the historically high freight market, DSME, South Korea’s second largest shipbuilder, incurred a US$368 million loss in Q1 2022, more than double the net loss in Q1 2021, as inflation pushed up the cost of raw materials. With the strike and sanctions against Russia causing the cancellation of LNG carrier orders meant for the Arctic LNG project, DSME went into emergency management mode this month.
Martina Li
Asia Correspondent
