South Korea-based Daewoo Shipbuilding & Marine Engineering (DSME) has entered a deal with contract workers that will end a 51-day strike after a much smaller pay raise than earlier demanded was agreed on.

One of the ‘big three’ shipbuilders in the country, DSME has now increased the wages of subcontractors by 4.5% and guaranteed jobs for workers at some subcontracting companies that could shutter, reported Reuters.

More than 10,000 of Daewoo’s subcontracted workers asked for a 30% pay raise and started a strike that hampered construction activities at the firm’s main yard.

Around 100 subcontractors occupied the main dock at the shipyard run by DSME in the southern city of Geoje.

The company claimed that each day of the strike caused it to lose around $24m. The strike action also delayed the deliveries of eight liquefied natural gas (LNG) vessels.

The deal, which also promises better time-off benefits and other improvements, has been accepted by union officials and subcontractors.

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In a statement, DSME was quoted by the news agency as saying: “Concerning problems that arose from the strike process, we will respond in accordance with the law and principles.”

Earlier this month, DSME cancelled a second order for an LNG carrier from Russian state shipping company Sovcomflot following a payment deadline that was missed.

This follows the first order from the company being cancelled in May.