Workers of South Korea’s debt-ridden Samsung Heavy Industries Co. has decided to go on a partial strike on Thursday in protest to the management’s restructuring plan, adding woes to the company already grappling with flagging orders amid a prolonged slowdown in the global shipbuilding industry.

The company’s labor council said on Tuesday that it will hold a partial strike on Thursday from 1 p.m. to 5 p.m. to oppose to the company’s self-restructuring plan that includes massive layoffs and selling non-core assets. The move is expected to halt all operations at Samsung Heavy Industries for four hours.

It is the first time for labor council member workers of Samsung Heavy Industries to stage such a large-scale walk out, although there has been a case in 2014 when only a small group of members went on strike to demand wage increase. Units of Korea’s largest conglomerate Samsung Group that in principle does not allow organization of a labor union have rarely staged a walk out.

The labor council of Samsung Heavy Industries had also been the most lenient among the big three shipyards when it comes to discussing current industry matters with the management and had been proactive in joining the management’s initiative to promote sales to ship owners. The labor council, however, changed its stance after the management announced a self-restructuring plan last month that includes streamlining up to 40 percent workforce by 2018 depending on business conditions and performance, as well as reducing 1,500 jobs this year through a voluntary retirement program.

The labor council held a vote on June 28 to go on strike and 91.9 percent of its members that cast ballots voted in favor of a stoppage. Since Samsung Heavy Industries’ labor council is not an ordinary labor union, it does not have to inform the labor dispute to the regional labor relations commission but only to the management.

According to industry sources, the management and labor have not been able to narrow down differences on the self-rescue plan, raising concerns over the possibility that the partial strike could expand into a full strike. An unnamed official from the labor council said that if the management does not resume talks with them, workers may stage a full strike.

An official from Samsung Heavy Industries management who asked to be unnamed, however, said it is impossible to withdraw the self-restructuring plan.

Last year, Samsung Heavy Industries saw a massive operating loss of 1.5 trillion won ($1.3 billion). This year, the shipyard is projected to swing to profit by posting 8.3 billion won in operating income but concerns are rising that if the strike drags out, profit cannot be ensured.

By Kim Jung-hwan

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