Subcontract workers at Daewoo Shipbuilding and Marine Engineering failed to reach an agreement in negotiations with management on Wednesday.

The two sides resumed talks at 11 a.m. on Wednesday, but announced that the negotiations were suspended after marathon talks that lasted for over 12 hours failed to yield a breakthrough.

The two sides were reportedly unable to come to an understanding on a lawsuit by management seeking compensation for losses and damages caused by the prolonged strike.

Earlier on Wednesday, the two sides managed to significantly narrow the gap on a wage hike, with the unionized workers accepting the firm's four-point-five percent increase.

The subcontract workers blamed management for the failure to reach an agreement in the resumed talks, saying that management had appeared receptive to their call for a withdrawal of the lawsuit until three days ago, suddenly changing its stance on Wednesday afternoon.

The two sides, however, said they will resume negotiations on Thursday morning.