Daewoo Shipbuilding Finds Few Takers for Voluntary Layoff

Daewoo Shipbuilding and Marine Engineering has managed to meet only half of its target for a voluntary retirement scheme to downsize the ailing firm.

The signup period has now been extended as Daewoo said only 500 workers signed up for the plan, which is being offered to employees who have worked there for more than 10 years.

And among those who applied, only 20 percent were assembly-line workers, whom the company is most eager to get rid of.

The main reason is resistance from the shipbuilder’s labor union, which is dissatisfied with the money on offer. Management is offering 34 months of wages, which boils down to around W60 million per employee (US$1=W1,132).

In addition to the voluntary retirement packages, Daewoo plans to lay off another 2,000 workers and reduce its total workforce from the present 12,699 to less than 10,000.
Source: ChoSun