Workers at Daewoo Shipbuilding & Marine Engineering (DSME) South Korea's third-biggest shipbuilder, have begun negotiations with their employer, after some of them went on strike during 7-8 July 2015, after the shipbuilder delayed payment of KRW20 billion (USD17.6 million) in ordinary wages.
In March, DSME's management agreed to pay ordinary wages by 7 July, after both sides went to court.
However, some of the workers went on strike when payment was not made by the due date. Each worker is owed around KRW3 million in ordinary wages.
According to a DSME representative who made a statement to a maritime journal; "DSME having some management difficulties, so asked for the workers' union's understanding. The strike stopped now and DSME continues to talk with the union to solve the problem."
True Friend Korea Investment & Securities analysts Lee Kyung-ja and Ahn Hyung-jun said, "Operating cash flows, a leading indicator in the order-driven sector, deteriorated to a KRW787.9 billion deficit and net debt increased by KRW500 billion, eroding the balance sheet compared to 2014."
DSME also paid out retroactive overtime wages of KRW45 billion in the first quarter of 2015.
As at the end of 2014, DSME had total debts of KRW15.526 trillion, up from KRW13.71 trillion at the end of 2013.
Lee and Ahn said, "With delays in drillship deliveries and input costs rising for offshore projects, we expect a slow decline in net debt."
In March, DSME's management agreed to pay ordinary wages by 7 July, after both sides went to court.
However, some of the workers went on strike when payment was not made by the due date. Each worker is owed around KRW3 million in ordinary wages.
According to a DSME representative who made a statement to a maritime journal; "DSME having some management difficulties, so asked for the workers' union's understanding. The strike stopped now and DSME continues to talk with the union to solve the problem."
True Friend Korea Investment & Securities analysts Lee Kyung-ja and Ahn Hyung-jun said, "Operating cash flows, a leading indicator in the order-driven sector, deteriorated to a KRW787.9 billion deficit and net debt increased by KRW500 billion, eroding the balance sheet compared to 2014."
DSME also paid out retroactive overtime wages of KRW45 billion in the first quarter of 2015.
As at the end of 2014, DSME had total debts of KRW15.526 trillion, up from KRW13.71 trillion at the end of 2013.
Lee and Ahn said, "With delays in drillship deliveries and input costs rising for offshore projects, we expect a slow decline in net debt."