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8 March, 2010
The Kumho Tyre Workers’ Union announced last Thursday 4 March that they will launch a general strike on 16 March, in response to the company’s announcement of a massive layoff plan, which saw 1,200, of the total 5,000, workers receive redundancy notices.
The 1,200 workers to lose their jobs were told they will be laid off on 2 April under the restructuring plan; however the management has said that 1,000 of those will be rehired by outsourced contractors, at the factories in Gwangju.
The parent company of Kumho Tyres, Kumho Asiana Group, is close to bankruptcy due to the failure of their subsidiary Daewoo Engineering and Construction Co. which they purchased in 2006. These economic conditions will be used to the advantage of Kumho Tyres, as they seek to outsource their workforce to precarious employment, and move production to China where production costs are lower.
The Kumho Tyre Workers’ Union, which is through the Korean Metal Workers’ Union (KMWU), affiliated to the Korean Confederation of Trade Unions (KCTU), sought to negotiate with management to avoid job losses. The union leaders offered management the chance to reduce salaries and bonuses, with management refusing the offer.
A state arbitrator has stepped in to negotiate a settlement. If either of the two parties refuses the final settlement of this committee, workers are legally permitted to strike. The Tyre Workers’ Union has pledged its willingness to negotiate with management to find a solution, but has said that it is ready to fight should management continue its unreasonable stance.
The KCTU has pledged its full support to the Kumho Tyre workers.