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Doosan Heavy mulling paid leave to idle employees amid deepening crisis

All News 14:25 March 11, 2020

By Kim Kwang-tae

SEOUL, March 11 (Yonhap) -- Doosan Heavy Industries & Construction Co., South Korea's largest power equipment maker, said Wednesday it is considering asking idle workers to take paid leave as part of efforts to cut costs amid dwindling orders.

Doosan Heavy said idle workers can receive 70 percent of their basic monthly wage for up to three months. The planned paid leave is subject to endorsement of Doosan Heavy's labor union.

Doosan Heavy said it had 6,700 employees at the end of December, though it did not give details on the number of idle workers.

In this photo provided by Doosan Heavy Industries & Construction Co., workers assemble a gas turbine at the company's plant in Changwon, about 400 kilometers southeast of Seoul. (PHOTO NOT FOR SALE) (Yonhap)

"We need more substantial emergency management measures," Jung Yeonin, Doosan Heavy chief operating officer, said in a message to the labor union, according to the company.

He said Doosan Heavy could not afford financial costs due to the company's declining sales and net losses in recent years.

Doosan Heavy posted accumulated net losses worth 2.68 trillion won (US$2.24 billion) from 2014 through 2019.

Shares of Doosan Heavy traded sharply lower at 3,450 won as of 2:20 p.m., down 23 percent from the previous session's close.

Jung said orders worth about 10 trillion won have dried up due to the cancellation of projects of nuclear and coal-fired plants in South Korea.

South Korea decommissioned two nuclear power plants in 2017 and 2019 as part of its policy to boost the supply of power from clean and renewable energy sources while weaning the country off nuclear and coal-fired plants.

South Korea is set to retire 10 out of its total 24 reactors on its soil by the end of 2030.

entropy@yna.co.kr
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