[Courtesy of Hyundai Heavy Industries]
The union of Hyundai Heavy Industries, the world's largest shipyard, launched a full strike Thursday for the first time in 23 years in protest at delayed wage negotiations and the planned spin-off of non-shipbuilding operations.
The strike comes on the heels of widespread concerns among shipyard workers and community people over the shipbuilding group's desperate campaign to ease a protracted business slump through a sweeping overhaul of its bloated structure.
Like other domestic shipyards, Hyundai has been put under creditor-led restructuring that focused on the spin-off of non-shipbuilding sectors. A meeting of shareholders is set for February 27 to endorse Hyundai's proposal to separate Hyundai Robotics as the holding company of non-shipbuilding units.
The union urged 15,000 members to join an eight-hour work stoppage at its main shipbuilding complex in the southern industrial city of Ulsan. There have been partial strikes since the union staged a full strike in 1994.
Shipyard workers, backed by Ulsan residents, have opposed the planned spin-off. They have also rejected a proposal to avoid layoffs by returning 20 percent of their basic monthly payment this year while wage negotiations remained bogged down.
Hyundai Heavy last year generated an operating profit of 1.2 trillion won (1.04 billion US dollars) from its non-shipbuilding sector and 700 billion won from shipbuilding.
Refining subsidiary Hyundai Oilbank recorded its largest-ever operating profit of 960 billion won. Hyundai Heavy's 91 percent stake in the refinery would go to Hyundai Robotics.
After completing the disposal of its non-core businesses, Hyundai Heavy will be left with shipbuilding, offshore drilling, and engine making businesses.
Lim Chang-won = cwlim34@ajunews.com
reporter
Park Sae-jin
swatchsjp@ajunews.com
