Samsung Heavy urges workers not to strike

The CEO at Samsung Heavy urged employees not to join with workers registered at the “labor council” in a strike, because company management plans to hold discussions with representatives of employees to revise restructuring plans.

“If the labor council initiates a full-scale strike, then Samsung Heavy may fall under complete control of its creditors. Samsung Heavy’s management will meet with representatives of the council to find solutions which will be beneficial to all interested parties,” Samsung Heavy CEO Park Dae-young told reporters, Wednesday.

The remarks came on the sidelines of his participation in a forum with CEOs of the country’s leading shipbuilders organized by the trade ministry at the InterContinental Hotel, southern Seoul.

Earlier, the labor council approved a plan to go on strike by opposing the massive restructuring plans announced by Samsung Heavy. The strike plans were approved by 91.9 percent of the 5,396 members. Samsung affiliates don’t allow labor unions.

Amid the struggles, Samsung Heavy said it plans to cut the number of employees, sell non-core assets and scrap all employee benefit programs.

“I believe a full-scale strike will hurt common interests of all Samsung Heavy employees. Now is the time to hold open and sincere discussions to address numerous challenges,” said CEO Park.

Park said he was sorry for not making the effort to hold talks about restructuring plans. “I apologize. This is a time when Samsung Heavy has been pressured to submit self-rescue plans to leading creditor banks.”

But the CEO declined to comment on whether or not Samsung Electronics will participate in massive capital-increase plans.

“Details about the scale of a capital-increase plan have yet to be fixed. I think it’s too early to talk about the role of Samsung Electronics in the upcoming campaign.”

Samsung Heavy plans to hold its board meeting on August 19 to approve a proposal to sell new shares to prevent it from complete fallout. Samsung Heavy is allowed to float up to 240 million shares and it has already issued 231 million.

Some workers at the labor council held street demonstrations in front Seocho Samsung Tower, southern Seoul, asking Samsung Heavy’s management to revise the company-submitted restructuring plans.

Representatives at the labor council said the restructuring plans are unilateral without discussions with the council and insisted that the current difficulties are because of management’s decision to win ship orders below market price.

The labor council delivered its protest letter to Samsung Vice Chairman Choi Gee-sung, who is also the chief of the conglomerate’s corporate strategy office, via a senior security guard.

Samsung Heavy was one of the “top three” global shipbuilders; however, it was hit by weak global demand, tougher competition and order cancellations from ship owners in Europe.

The Korea Development Bank (KDB), the main creditor of Samsung Heavy, ordered the company to submit massive restructuring plans in return for winning approval to extend the maturity of the corporate bonds.
Source: KoreaTimes