STX labour union protests against rescue plan

The labor union of South Korea’s STX Offshore & Shipbuilding has decided to stage a strike in protest against the self-rescue plan proposed by the shipyard and creditors.

The union reckon the plan is unacceptable as it includes a cut in manpower through voluntary retirement and outsourcing, which does not guarantee the protection of workers.

Earlier this month, STX was told by the South Korean government that it can continue to build ships so long as it slashes 40% of its workforce and focuses on product, chemical and LPG carriers. Meanwhile, the government ruled to liquidate Sungdong Shipbuilding.

The union plans to go on a two-day strike on Thursday and Friday and subsequently start a full strike from March 26 if the shipyard does not respond to its demands.

The state-run Korea Development Bank (KDB), a major creditor of STX, has expressed that the labor union must agree on the self-rescue plan proposed by the shipyard otherwise the shipbuilder will inevitably face court receivership.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.
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