The labour union of South Korean shipyard Hyundai Heavy Industries (HHI) has demanded the company involve the organisation in the negotiations for the takeover of its compatriot rival Daewoo Shipbuilding & Marine Engineering (DSME) and provide job guarantees to its employees.
Last month, the state-run Korea Development Bank, the largest shareholder of DSME, signed a conditional deal with HHI to sell a 55.7% controlling stake in the yard.
The union said in a newsletter today that labour-management relations could worsen if management goes ahead with the takeover without guaranteeing existing jobs.
The union of HHI reached a temporary agreement with the management of the shipyard in December last year after seven months of negotiations.
“The management should apologise for closed-door negotiations, and promise the union’s participation in the takeover process,” the union said.
The labour union at DSME has also expressed similar worries.