Hyundai Heavy Industries decided to divide itself at a shareholders' meeting held on May 31, which finished in only 10 minutes.
Earlier, unionized Hyundai Heavy Industries workers boycotted the meeting, claiming that the division will lead to a massive layoff, worse labor-management relations and a regional economic downturn as assets will be concentrated on the resultant intermediate holding company, while liabilities will be put on the new operating company. Meanwhile, the management insisted that the division is necessary for acquisition of Daewoo Shipbuilding & Marine Engineering and promised to maintain their employment and collective agreement.
After the meeting, the unionized workers claimed that the meeting was invalid. The venue of the meeting had to be changed in 30 minutes as the workers illegally occupied it. The workers remained there until 10:00 a.m., when the meeting was scheduled to start, and then the court allowed the management to change the place.
“The management committed a serious procedural violation and workers owning 3 percent of the company via the employee stock ownership association could not participate in the meeting,” the workers claimed. “We followed an appropriate procedure and it is the workers that committed illegal acts,” the management said.