Civil damage, criminal charge issues linger after DSME strike ends

Civil damage, criminal charge issues linger after DSME strike ends

Fire officials set up air mattress at a dockyard of Daewoo Shipbuilding & Marine Engineering on Geoje Island in South Gyeongsang Province, July 21. Korea Times file

By Lee Kyung-min

Up to 800 billion won ($ 610 million) in civil damages claims will continue to track Daewoo Shipbuilding & Marine (DSME) union subcontractors. Watcher, Sunday.

The one-week deadlock was cleared on July 22nd. This is primarily because the subcontractor has agreed to a lower wage increase and employment guarantee than required if the employer (shipbuilder’s partner) dismisses.

What was lacking in the hasty settlement was whether the shipbuilding company would file a civil lawsuit claiming about 800 billion won for damages due to strike-related corporate losses. It was also unclear whether members would be referred to the prosecutor for interfering with the business and how many members would be referred to the prosecutor.

According to observers, the apparent absence of two significant conditions was a move of shipbuilders to claim liability for significant financial and reputational damages caused by collective action.

Shipbuilding companies filed criminal charges against five leaders in a group of subcontractors last month, which could lead to civil lawsuits within the next few months. Another factor is the need to avoid prosecuting key DSME executives for trust breaches.

This is an ongoing risk to management that is certain to occur if you neglect to seek relief.

The loss of the shipbuilding company was 816.5 billion won, the sales were 646.8 billion won, the fixed cost was 142.6 billion won, and the overseas delivery delay was 27.1 billion won.

 

Credit/Source : KoreaTimes

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