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Biz News Korea(Eng)
Samsung Heavy halt wage talks to focus on getting work done well
- Collected
- 2017.04.01
- Distributed
- 2017.04.03
- Source
- Go Direct
The two sides have not finalized wage terms last year due to conflict over the company’s self-rescue program in return for debt relief from creditors, but decide to put the talks on hold to focus more on their field jobs.
All three shipbuilding majors had to seek debt relief last year amid dearth of orders from lengthy slowdown in global demand and oil prices. Samsung Heavy in July last year pledged to cut workforce and non-core assets to raise new capital and save cost. Union members went on strike last year.
Wage negotiations demand presence of dock chief and other senior union members. Other employees also must attend weekly meetings to hear progress in the talks.
The two agreed to put off wage bargaining as the builder must focus entirely on making meticulous final touches to major orders - an offshore central processing facility (CPF) for the Ichthys LNG Project in Australia, Prelude, the world`s first floating liquefied natural gas (FLNG) project, commissioned by Royal Dutch Shell, Egina floating production storage and offloading (FPSO) - before their deliveries.
The union chief also would accompany the management when meeting ship owners or new clients to assure them of strike-free work.
As of the end of 2016, Samsung Heavy reported $28 billion in order backlog. The company set its target for this year at $6 billion, while receiving $1.5 billion worth new orders until February.
By Moon Ji-woong
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]