As STX Offshore & Shipbuilding (STX O&S) is going through a business rehabilitation process, labor and management have concluded a wage agreement that includes a reduction of the regular bonus. The STX O&S union agreed to the reduction of the regular bonus, cessation of performance-based bonuses and to have its members use leaves of absence on a rotational basis. Management agreed to withdraw its decision to lay off workers.
The conclusion of this wage agreement and withdrawal of layoff plans reflect the commitment of labor and management to overcome the crisis in the shipbuilding industry and return to its normal status of operations. A spokesperson for STX O&S stated, “The union has endured hardships such as wage cuts, and use of leaves of absence on a rotational basis only in order to assist with rehabilitation of the company. In turn, management has agreed to withdraw its ongoing layoff plans.”
On 27 May, the Seoul Central District Court approved the business rehabilitation plans of STX O&S and the business rehabilitation process is currently underway.