ICEM Blasts LG Group, ChevronTexaco for Stance in Korean Dispute

Instead of threats and police intimidation, the 20-million-member ICEM is calling on both LG Caltex Oil Corp. and the government of South Korea to settle a labour dispute by meeting workers’ concerns at a refinery in the southern industrial city of Yousa.

Strike at the LG Caltex refinery in Yousa, South Korea

Some 800 union members of ICEM affiliate Korean Chemical and Textile Workers Federation, part of the Korea Confederation of Trade Unions, are now in Day 12 of an industrial dispute at the 650,000 barrel-per-day refinery, a joint venture owned by South Korean LG Group and US major ChevronTexaco.

The South Korean government of Roh Moo-Hyun declared the strike illegal after workers briefly occupied and then walked out 18 July. The company then threatened striking workers with “severe action” if they did not return to work by yesterday, 29 July.

A week ago, the Kwangju prosecutor’s office received from a court arrest warrants for five key leaders of the union. Union President Kim Jungkon, Vice President Oh Seunghoon, Information Director Chang Cheol, Labour Disputes Director Song Hwadong and Shop Steward Shim Myungbong have sought sanctuary at the Myeong-dong Cathedral in Seoul.

“The company—and the government by these arrest warrants and show of police force in and around the refinery—are exacerbating the dispute by threats to workers and demands that infringe on freedom of association and the right to strike,” said ICEM General Secretary Fred Higgs. “The ICEM demands that these arrest warrants be rescinded immediately.”

The union is seeking a reduction in working hours from the current 42 per week, percentage pay hikes in proportion to the Yousa’s refinery’s net operating income, and hiring of 110 new workers to alleviate fatigue and safety concerns. LG Caltex utilizes 650 contract workers who are paid less, work even longer hours and have limited benefits.

First quarter 2004 net profits by LG Caltex from the Yousa refinery amounted to 200 billion won, or US$172.8 million.