The majority of employees working at South Korea’s DSME decided to go on strike in a bid to oppose a takeover by Hyundai Heavy Industries , on February 19. The decision to go on strike was supported by a majority of DSME workers South Korea’s Yonhap informed.
Specifically, the possibility of a strike has been emerging from the beginning of February, as the workers are concerned that the takeover will cause extended layoffs, something that Hyundai Heavy’s workers have also mentioned.
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Moreover, the merger between the two companies has raised many concerns on job cuts. Therefore, after a two-day polling process, more than 90% of the union’s members voted in favour of industrial action.
KDB noted, on January, that it signed a MoU with Hyundai that includes liquidity support of 2.5 trillion won ($2.25 billion) for Daewoo, in its interest in purchasing the shipbuilding company. Additionally, the bank owns a 55.7% part of Daewoo.
Yonhap reports that if the merger proceeds, it would result to the creation of a shipbuilding giant.
The takeover talks follow DSME’s announcement that in 2018 met 90% of its orderbook target for the first time in the last four years.
Finally, Hyundai stated that it wishes to sell part of its stake in refiner Hyundai Oilbank to Saudi Aramco for KRW 1.8 trillion as part of its restructuring.
