Striking S.Korea workers at DSME shipyard agree to go back to work

"Both sides have reached an agreement and are drafting a written document to sign," said Jang Seok-won, director of public relations at the Korea Metal Workers' Union. Since late last month, about 100 subcontractors have been occupying the main dock at DSME's shipyard in the southern coast city of Geoje, demanding a 30% pay increase.

Contract workers have agreed to end a strike and occupation at the main shipyard operated by Daewoo Shipbuilding & Marine Engineering (DSME) <042660.KS), South Korea's No.3 shipbuilder, a union official representing the strikers told Reuters. "Both sides have reached an agreement and are drafting a written document to sign," said Jang Seok-won, director of public relations at the Korea Metal Workers' Union.

Since late last month, about 100 subcontractors have been occupying the main dock at DSME's shipyard in the southern coast city of Geoje, demanding a 30% pay increase. The South Korean government had said the strike was illegal, in violation of union laws.

The company previously said it expects a loss of 32 billion won ($24 million) a day due to the strike and the dispute had cost it more than $400 million as of mid-July. The construction of eight vessels at five docks has been affected, with delivery dates pushed back by two to five weeks as of Wednesday, a DSME spokesperson said.

($1 = 1,309.3700 won)