Samsung shipyard reveals cut in workforce and wages

By Park Sae-jin Posted : June 15, 2016, 15:44 Updated : June 15, 2016, 15:44

[Courtesy of Samsung Heavy Industries]


Samsung Heavy Industries, a troubled shipbuilding arm of South Korea's largest conglomerate, Samsung Group, Wednesday unveiled an early retirement of 1,500 workers this year, a cut in salaries and the suspension of some facilities as part of its self-rehabilitation package.

The shipyard said it would slash its workforce by up to 40 percent by the end of 2018, including 1,500 this year. It has 14,000 regulars workers.

Samsung Heavy vowed to suspend some of its facilities including floating docks if it cannot see a turnaround next year. It has not clinched any order so far this year.  The shipyard also proposed a stock sale. South Korean tech giant Samsung Electronics is the shipyard's largest stakeholder with 17.62 percent.

The shipyard has already revealed a self-rehabilitation program worth 1.5 trillion won (1.27 billion US dollars).

Aju News Lim Chang-won = cwlim34@ajunews.com
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