DISPUTE OVER SHIPBUILDERS’ STRIKE

[Anchor Lead]

It's been nearly a month since the contracted workers of Daewoo Shipbuilding & Marine Engineering seized Daewoo's shipyard and launched a strike demanding a wage raise. President Yoon says the strike must be halted because occupying an industrial site is illegal. Relevant ministers have also issued a statement urging the protesters to end the strike. The labor union blasted the government for its tough stance.

[Pkg]

It's been 28 days since Daewoo Shipbuilding and Marine Engineering's contracted workers seized a shipyard dock. The government last week urged labor and management to reach an agreement. Both sides have held four rounds of talks, but have failed to bridge their differences. Labor has modified its demand to raise wages by 30 percent, but it has done little to help reach a consensus. Labor also demanded that the Korea Development Bank, the major shareholder of DSME, play its part in the negotiations. But the bank maintained it won't meddle in the issue. The firm has seen it sales plummet by 500 billion won due to the backlog of shipbuilding orders stemming from the seizure. The firm has also spent 100 billion won in fixed overheads. Night shifts were also suspended for two days in a row.

[Soundbite] Yoon Yo-han(DSME) : "We decided to take time off as we have no choice but to adjust production. There is still room for time off depending on how this situation unfolds."

President Yoon said the strike must be dealt with in line with the rule of law, stressing the illegal seizure of the industrial site must end. After issuing a statement last Thursday, related ministers issued another statement on Monday urging the protesters to halt their strike.

[Soundbite] Choo Kyung-ho(Deputy Prime Minister for Economy) : "Violence and illegal strikes can no longer receive support from the public and most colleagues. Illegal acts must be dealt with sternly in line with the law."

The Gyeongsangnam-do branch of the Korean Metal Workers' Union rebutted by saying the government is simply using its authority without providing solutions. The Korean Confederation of Trade Unions also issued a statement urging the government to step in, saying the shipbuilder and its majority shareholder KDB are the ones who should be resolving the issue.