2024-01-17 02:41:00
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Long-term hiatus due to internal strife among union members
Hyundai Engineering & Construction “Already invested 180 billion won”
Additional contributions may snowball
It has been more than 15 days since the redevelopment work of ‘Daejo District 1’ in Eunpyeong-gu, the largest redevelopment project site in Gangbuk, Seoul with 2,541 households, was halted, but there are no signs of resolution. Hyundai Engineering & Construction, the construction company, has not given up on its position that construction cannot be resumed, saying that it has not received a single penny from the union out of the 180 billion won in construction costs invested to date.
As construction halts became a reality starting on the 1st, concerns are growing among union members that if the situation prolongs, additional contributions might snowball. Nevertheless, negotiations between the union and the construction company to resume construction are not taking place due to the absence of the union’s executive branch itself, which should be the subject of negotiations.
On the 17th, an official in the construction industry said, “It seems difficult for construction to resume before the internal strife in the union is resolved.” He added, “The reason construction was carried out for over a year until the end of last year even though construction costs were not received is because the contractor was a large first-tier construction company. “If it were a company, it would have faced the risk of bankruptcy due to financial difficulties,” he said. The construction cost invested by Hyundai Engineering & Construction to date is approximately 180 billion won. Approximately one-third of the total construction cost of 580.6 billion won has already been invested.
Hyundai Engineering & Construction complained that it was unable to continue discussions regarding the payment of overdue construction costs due to the vacuum in the union’s executive branch.
A Hyundai Engineering & Construction official said, “We held a briefing session for union members in December of last year and explained in detail that construction may be halted if construction costs are not paid. We will make efforts to resume construction as soon as the union normalizes.” .
As the construction suspension continues for more than 15 days, there are also observations that union members’ additional contributions may increase rapidly due to the extension of the construction period and increased financing costs. One union member emphasized, “There is even talk that the additional contribution due to the suspension of construction will amount to 150 million won,” and added, “It is important that we do not all go to ruin.” This official said, “Indiscriminate lawsuits between union members must be stopped, and a union executive department must be formed to proceed with the project.”
The union held a general meeting for general sales in the first half of last year, but in the process, internal conflicts continued throughout the year, including suspicions of rigging the election of the union president, lawsuits, suspension of the union president’s duties, and re-election of the union president, and the union’s decision-making function was virtually lost. As of now, there are no plans for general sales to finance construction costs.
Reporter Kim Young-joo [email protected]
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