Daewoo Ship union plans strike over stake sale
Daewoo Shipbuilding & Marine Engineering Co workers voted to stop work at the world's third-largest shipyard by backlog unless they are guaranteed a say in the planned sale of a stake by the company's biggest shareholder.
About 90 per cent of labour union members voted to strike, the group said on its website.
That represents about 54 per cent of the Seoul-based company's 10,467 employees. The union will hold a rally tomorrow to push its demands.
A walkout could delay delivery of vessels that Daewoo Shipbuilding is constructing from its record-high order backlog, which represents more than three years of work. The union is asking to participate in the planned sale of more than 50 per cent of the company held by a group a creditors.
Korea Development Bank, with 31 per cent, and Korea Asset Management Corp, with 19 per cent, became shareholders after rescuing the shipbuilder from near collapse, swapping their debt for equity in December 2000. The workers have also offered to buy Korea Asset Management's stake, the union said.
A spokesman for Daewoo Shipbuilding declined to comment on the strike.
Shares of Daewoo Shipbuilding rose 50 won to close at 30,950 won yesterday in Seoul.
The stock has gained 6 per cent this year, compared with a 0.9 per cent decline in South Korea's benchmark Kospi index.
Daewoo Shipbuilding is the world's No 2 maker of liquefied natural gas carriers, the most expensive and complex type of cargo vessel. It currently has a backlog to build 39 LNG ships.
Samsung Heavy Industries Co, also based in Seoul, is the biggest in that market, with a backlog of 41 vessels.
South Korean shipyards grabbed almost half of last year's US$105.5 billion in ship orders, the highest level of contracts ever.
Samsung Heavy and Daewoo Shipbuilding on Monday won orders to build liquefied natural gas carriers valued at US$2.37 billion.
Daewoo Shipbuilding said it will construct four ships that can each carry 210,100 cubic metres of LNG for Qatar and one vessel that will carry 170,000 cubic metres of the gas for an unidentified company in Europe. The orders are valued at US$1.22 billion.
The ships will be delivered by the end of 2010, the Seoul-based company said.
Creditors will begin the sale of Daewoo Shipbuilding and Hyundai Engineering & Construction Co this year, Korea Development Bank said in January, and the process will be outlined this month, Sung Joo Young, a spokesman at the lender, said yesterday.
About 90 per cent of labour union members voted to strike, the group said on its website.
That represents about 54 per cent of the Seoul-based company's 10,467 employees. The union will hold a rally tomorrow to push its demands.
A walkout could delay delivery of vessels that Daewoo Shipbuilding is constructing from its record-high order backlog, which represents more than three years of work. The union is asking to participate in the planned sale of more than 50 per cent of the company held by a group a creditors.
Korea Development Bank, with 31 per cent, and Korea Asset Management Corp, with 19 per cent, became shareholders after rescuing the shipbuilder from near collapse, swapping their debt for equity in December 2000. The workers have also offered to buy Korea Asset Management's stake, the union said.
A spokesman for Daewoo Shipbuilding declined to comment on the strike.
Shares of Daewoo Shipbuilding rose 50 won to close at 30,950 won yesterday in Seoul.
The stock has gained 6 per cent this year, compared with a 0.9 per cent decline in South Korea's benchmark Kospi index.
Daewoo Shipbuilding is the world's No 2 maker of liquefied natural gas carriers, the most expensive and complex type of cargo vessel. It currently has a backlog to build 39 LNG ships.
Samsung Heavy Industries Co, also based in Seoul, is the biggest in that market, with a backlog of 41 vessels.
South Korean shipyards grabbed almost half of last year's US$105.5 billion in ship orders, the highest level of contracts ever.
Samsung Heavy and Daewoo Shipbuilding on Monday won orders to build liquefied natural gas carriers valued at US$2.37 billion.
Daewoo Shipbuilding said it will construct four ships that can each carry 210,100 cubic metres of LNG for Qatar and one vessel that will carry 170,000 cubic metres of the gas for an unidentified company in Europe. The orders are valued at US$1.22 billion.
The ships will be delivered by the end of 2010, the Seoul-based company said.
Creditors will begin the sale of Daewoo Shipbuilding and Hyundai Engineering & Construction Co this year, Korea Development Bank said in January, and the process will be outlined this month, Sung Joo Young, a spokesman at the lender, said yesterday.
