Daewoo Construction Union Opposes Jungheung Construction Acquisition, Announces General Strike on the 18th of Next Month

The site where the Daewoo Construction union is conducting a one-person tent protest and avatar strike. (Photo by Daewoo Construction union)

[Asia Economy Reporter Ryu Taemin] The Daewoo Construction union, which has opposed the sale of Daewoo Construction as being hasty, will launch a general strike on the 18th of next month.

The Daewoo Construction branch of the National Construction Enterprise Labor Union announced on the 27th that it will begin the first general strike starting from the 18th of next month. This strike will be conducted in the form of a work-from-home strike to comply with COVID-19 prevention guidelines.

Prior to the general strike, a ‘one-person tent protest’ and an ‘avatar strike’ are also underway in front of Daewoo Construction headquarters in Euljiro, Jung-gu, Seoul. The avatar strike is a method where union members do not gather in person but show solidarity by collecting safety helmets from union members at various sites nationwide in one place.

The Daewoo Construction union plans to escalate the strike in stages according to the COVID-19 situation, starting with the first general strike. A union official stated, “We will put all our efforts into blocking the due diligence of the buyer, Jungheung Construction.”

Meanwhile, Justice Party lawmaker Bae Jin-gyo visited the one-person tent protest site on the same day and held a meeting with Shim Sang-chul, chairman of the Daewoo Construction union. Lawmaker Bae said, “It is true that there are suspicious points regarding the lack of an open bidding process and the mid-process request to change the bid price,” adding, “Since various problems and suspicions have been raised, the National Assembly’s Political Affairs Committee will thoroughly examine the matter.”

Earlier, KDB Investment, the largest shareholder of Daewoo Construction, selected the Jungheung consortium as the preferred bidder for the sale of Daewoo Construction on the 5th. During this process, a de facto re-bidding occurred as the Jungheung consortium and its competitor, the DS Networks consortium, revised the prices initially submitted in the main bid, sparking controversy inside and outside the market. The union has warned of a tough struggle, claiming that Jungheung Construction obtained the preferred bidder status through unfair means.