À̹ÌÁö È®´ë The plan of South Korea¡¯s biggest shipbuilder Hyundai Heavy Industries Co. to take over the country¡¯s second largest shipbuilder Daewoo Shipbuilding & Marine Engineering Co. (DSME) is met with fierce opposition from the runner-up¡¯s employees and residents of DSME¡¯s home base.
According to the DSME labor union, 92.16 percent of its 5,249 members who cast ballots on Tuesday voted in favor of holding a strike in protest against Hyundai Heavy Industries Group¡¯s (HHI) plan to acquire DSME.
The voting – which began on Monday at its Okpo shipyard in Geoje, South Gyeongsang Province – was held following last week¡¯s announcement by DSME¡¯s largest shareholder Korea Development Bank (KDB) that it signed a memorandum of understanding with HHI on the plan to sell its stakes to HHI. KDB and HHI aim to sign a final deal early next month.
But their plan has already hit a bump. An unnamed DSME union member denounced that the KDB¡¯s gesture of sending the country¡¯s third largest shipbuilder Samsung Heavy Industries Co. a proposal to review possible acquisition of DSME as just a ¡°show¡± to dodge criticism against privileges given to HHI. The union urged to call off the acquisition because it threatens the livelihood of DSME workers.
Following the voting outcome, the DSME union will stage a partial strike during lunch hour on Wednesday, followed by a rally in Seoul by union executives on Thursday. On Feb. 27, all union members plan to stage a walk-out in front of KDB headquarters in Yeouido, Seoul. The union also warned of possible physical confrontation as it has decided to block a visit from a due diligence team who will review DSME¡¯s business status after a final contract is signed on March 8.
Politicians and civic groups based in Geoje, home to DSME, also have joined the union in opposing the merger deal. A group of activists and politicians representing Geoje residents held a press conference in front of Geoje City Hall in protest against the deal. They said HHI¡¯s takeover of DSM would topple down DSME suppliers based in South Gyeongsang and Busan and lead to a downfall in regional economy.
KDB last week announced that it has signed a preliminary and conditional deal with HHI on the plan to hand over its 55.7 percent stake in DSME. The deal, which had been in discussion since October last year, is part of a government-led move to reorganize the country¡¯s shipbuilding industry to boost global competitiveness that has weakened over years in line with the ascent of Chinese rivals.
By Choi Seung-gyun and Lee Eun-joo
[¨Ï Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]