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14 June, 2010
The Hungarian Labour Inspectorate levied a fine recently against Hankook Tyre Magyaroszag Kft. for obstructing the duties and activities of a branch of ICEM-affiliated Federation of Chemical, Energy, and General Workers’ Unions (VDSZ). Although the fine was small in monetary amount, €3,646, it was significant in the fact that Hankook, at its burgeoning tyre factory in Dunaujvaros, has proven again its unwillingness to accept a trade union.
According to VDSZ President Tamás Székely, Hungary’s labour agency fined Hankook for refusal to allow lawful entry to the plant of a VDSZ official and a member of the company’s supervisory council. Management then refused to recognise the capacity of the union leader.
VDSZ President Tamás Székely
The violation comes on top of other breaches of Hungarian labour law, as well as European Union statutes. When the factory at Dunaujvarous started up in June 2007, low pay, excessive overtime, and a forced six-day work-week made the then 800 workers turn to the VDSZ Tyre Manufacturing Workers’ Union for representation.
Management would not recognise the union and even after a labour tribunal granted certification, the company appealed the decision through the courts. The company interrogated workers on their lawful right to join VDSZ and illegally dismissed union activists. Ultimately, Hungarian jurisprudence fully recognised the union, but that did not stop Hankook from interfering with union involvement in formation of a European Works Council (EWC).
VDSZ proved successful in EWC elections, but the most recent Labour Inspectorate fine proves the Korean-based company still is not ready for the European-style social model, despite the fact that the European Commission funds totaling €100 million were used in start-up of the Dunaujvaros factory. A Hankook spokeswoman said the company will appeal the latest fine.
Meanwhile, Hankook, the world’s seventh largest tyre manufacturer which is 10% owned by Michelin, is preparing to increase its Hungarian workforce from the current 1,250 to 2,000 by next year. The company plans to double tyre production at Dunaujvaros to 30,000 tyres per day. The company in late May won an exclusive supply contract with Volkswagen to produce tyres for all models of vehicles. In March, it signed a development contract with BMW that the company expects will lead to a supply contract.
Hankook has faced numerous labour battles in its home country, specifically with the Korean Metalworkers’ Union two years ago at its ASA aluminum wheel subsidiary in Guemsam, South Chungcheong Province.