Deal Struck to End Daewoo Shipyard Strike

If lawsuits demanding damages are dismissed, contract shipyard employees at Daewoo Shipbuilding & Marine Engineering (DSME) are prepared to halt their strike and accept a salary raise given by the firm, a union official representing the strikers told Reuters on Thursday.

Since June 2, over 120 unionized DSME subcontractors' employees have occupied a sit-in at the Okpo shipyard on Geoje Island calling for a 30 percent pay increase and better working and job circumstances. They had taken up residence at the main dock of the shipyard since June 22 in an oil tanker that was being built.

According to the officials participating in the negotiations, the 4.5 percent salary increase, payment of some special allowances, and partial employment succession of workers from subcontractors that have shut down their operations were all agreed upon by the striking employees and their employers. Later that day, the majority of the unionized employees gave their approval for the accord.

However, the parties were unable to reach an understanding over the extent of the strikers' exclusion from criminal liability and the dismissal of a damages lawsuit against them, and they decided to undertake more talks.

According to reports, management has threatened to sue striking employees for damages, alleging a significant operating loss. However, labor has blasted this threat as punishment against employees who are underfunded.

The labor-management agreement was reached right before the shipyard's two-week summer vacation starts this weekend, and the government has taken action to deploy a police force to break up the extended sit-in, which has given the fourth-largest shipyard in the world significant damage.

The government hinted at the prospect of taking criminal action against the unionized employees and stated it will respond to any illegal activity while the strike is in progress in line with the law and basic moral standards.