The trade union workers of South Korea's STX Offshore & Shipbuilding Co. said Sunday they will stage a strike starting this week to protest the company's self-rescue plan, reports Yonhap.
According to Korean media reports
, the union would organize the strike action this week to express its disagreement with the company's planned restructuring program as it does not guarantee workers’ jobs.
Starting today (Monday) 8:00 a.m., the union said 700 workers will walk out and called on the company to scrap the planned layoff of workers.
"We will carry out a full strike for the time being, and hold protests and rallies to have the people become aware of unfairness surrounding the planned layoff," a union official said. "We are willing to embrace cuts in welfare or wages, as long as our employment is guaranteed."
Earlier, a statement from the union said: “We strongly refuse (to accept the company’s) self-rescue plan that does not guarantee survival of workers. The official self-rescue plan is completely unacceptable as it includes a cut in manpower through voluntary retirement and outsourcing.”
According to Yonhap report, the Korea Development Bank earlier
vowed to improve financial health of STX by rolling out an intensive restructuring program and focus on securing premium gas carrier projects.
In line with the move, STX plans to cut 75 percent of its costs spending on labor to deal with its latest financial struggle. The remaining workers will also face cuts in compensation and wages.
STX's restructuring plan reportedly includes a decrease in the company’s workforce through voluntary retirement and outsourcing applications from production workers, as well as asking some employees to submit resignations.