Strike Vote from 15th to 19th
In front of the Daewoo E&C headquarters in Euljiro, Jung-gu, Seoul, wreaths and banners installed by the Daewoo E&C labor union are displayed.
The Daewoo Construction Labor Union announced on the 13th that it plans to launch a general strike to block the sale, claiming that KDB Investment (KDBI) is rushing the sale of Daewoo Construction.
KDBI, the largest shareholder of Daewoo Construction (holding 50.75% of shares), designated the Jungheung consortium as the preferred bidder for the sale of Daewoo Construction on the 5th. KDB Investment is a subsidiary of the Korea Development Bank (KDB) specializing in restructuring. During this process, some unusual 're-bidding' took place, causing controversy over the sale method and procedures.
The Daewoo Construction branch of the National Construction Enterprise Labor Union issued a press release on the same day, stating that it plans to conduct a union member vote on a general strike from the 15th to the 19th.
The Daewoo Construction union argued that KDBI's current conduct of a 'seller due diligence' is "evidence that the sale is being rushed and conducted illegally without proper procedures and principles."
Seller due diligence is a process where the seller assesses the value of the asset before the sale and provides information to potential buyers to estimate an appropriate value before the sale. Conducting this after Jungheung Construction was selected as the preferred bidder is against the principles.
The union claimed, "The desired purchase price was already confirmed through the main bidding, but the sale is being rushed to suit the interests of officials from the Korea Development Bank and KDBI."
They added, "We can never recognize Jungheung Construction, which secured the status of preferred bidder by disrupting the bidding process during this rushed sale," and stated, "We will do everything possible to block the buyer's due diligence."
The union said it plans to request an audit from the Board of Audit and Inspection, submit a petition to the Blue House, demand a national audit through the National Assembly, and file complaints with investigative agencies regarding any illegal aspects involving KDB and KDBI.
In front of the Daewoo E&C headquarters in Euljiro, Jung-gu, Seoul, wreaths and banners installed by the Daewoo E&C labor union are displayed.
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