Striking S Korea shipyard workers in talks to end siege

Striking contract workers and Daewoo Shipbuilding & Marine Engineering (042660.KS) (DSME) have made some progress in talks over wage hikes, the two sides said on Wednesday, seeking to avoid the use of force to end a siege of the shipyard.

About 100 sub-contractors have occupied DSME’s main dock in the south coast city of Geoje since last month demanding a 30per cent pay increase, halting work at the yard that the company has said have led to delivery delays.

DSME and the Korean Metal Workers’ Union, which represents the strikers, said the two sides have been talking to narrow a difference over proposed pay increases, with the striking workers lowering their demand to 15per cent.

Union officials told Reuters on Wednesday the company is refusing to budge on its offer of a 4.5per cent pay increase. A DSME spokesperson declined to discuss details of the negotiations. A new round of talks was scheduled for Wednesday.

The fresh round of talks come as conservative President Yoon Suk-yeol’s government raised pressure on the strikers, calling the siege illegal and unacceptable and saying it was causing “tremendous damage” to an industry at a critical time on its path to recovery.