S Korea govt intervenes in DSME strike

The South Korean government has intervened in an ongoing strike which since the start of June has seen subcontractors occupy the largest drydock at shipbuilder Daewoo Shipbuilding & Marine Engineering (DSME).

South Korea’s prime minister Han Duck-soo added his voice to labour and industry ministers to call for an end to the strike, which is estimated to have cost DSME more than $400m.

Minister of Trade, Industry and Energy Lee Chang-yang said last Thursday July 14th in a press conference that “because of the sit-down strike at (DSME’s) dock, production and delivery of three vessels is being stalled,”

DSME has been under state control since coming close to bankruptcy seven years ago, admitted last week that its debt ratio had increased to 547% by the end of the first quarter. A number of issues were blamed, including the cancellation of Russian ship orders, rising raw material prices, and the ongoing strike.