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한상넷 로고한상넷

전체검색영역
DSME workers to take turns on unpaid leave from Jan
Collected
2016.11.01
Distributed
2016.11.02
Source
Go Direct
The entire workforce - both management and production level - at Daewoo Shipbuilding & Marine Engineering Co. (DSME) living off bailout program by state-led lenders will take turns on unpaid leave starting January.

The cost-saving means was also mentioned in the government-led restructuring outline for the shipbuilding industry saddled with debt, little work, and overcapacity.

The shipbuilder under the responsibility of state-run Korea Development Bank will downsize as its annual revenue of around 13 trillion won is expected to shrink to 7 trillion won by 2018. The share of money-losing offshore business will be scaled down to 30 percent from current 55 percent.

DSME previously said it would lower labor cost by 1 trillion won ($875.2 million) by 2019.

All the senior-level and office workers will go on a month-long unpaid leave. The dockyard workers would have to use up their annual holiday quota as they won’t be financially compensated.

The shipbuilder is expected to register sales of 12.6 trillion won this year. Meanwhile, the government on Monday announced a plan to restructure the shipbuilding industry.

By Moon Ji-woong

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]