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7 June, 2000An American investment firm holding many shares in POSCO expresses its concern to the Korean company over its treatment of workers.
USA/KOREA: The IMF has received a copy of a most welcomed letter in support of the Sammi Specialty Workers' Struggle. The unexpected backing comes from Walden Asset Management (WAM), a division of the U.S. Trust Company of Boston, an investment manager with $1.2 billion in assets being managed for clients concerned with the social and environmental practices as well as financial performance of companies in which they are investing.
The letter, written by the president of WAM, Geeta Aiyer, is addressed to the Chairman and CEO of the government-invested Pohang Iron & Steel Company, which bought Sammi Specialty Steel in December 1996 and illegally refused to extend employment to the active trade unionists.
The letter states:
"We are writing on behalf of our clients who own 7,000 shares in Pohang Iron & Steel Co. Ltd. (POSCO) to express concern about POSCO's treatment of former workers of Sammi Specialty Steel Co. Along with our clients, we believe workers should have the right to collectively bargain with their employers if they so choose, and workers and employers should respect collective agreements. We understand that since 1997 POSCO has not rehired approximately 245 former Sammi workers after the POSCO subsidiary Changwon Specialty Steel Co. purchased the company, contrary to the collective agreement that had been in force for over ten years with the workers and their union, the Sammi Specialty Steel Workers' Union. We understand that many of these workers were active union supporters, including union officials and shop stewards.
"POSCO's treatment of the Sammi workers appears contrary to the company's stated goal of abiding by international standards in its operations. POSCO's website states: 'We should not stick to our old rules. Today, we can survive only if we transform ourselves to accept global standards.'
"We are concerned that a committee of the International Labour Organisation investigated POSCO for alleged infringement of trade union rights and recommended that the Korean government take necessary steps to secure their reinstatement. We note, however, that in 1998 Asia Business magazine ranked POSCO second out of over 240 Asian companies for being a good employer, and eighth overall for being honest and ethical. We believe that POSCO's good reputation is threatened by the Sammi case.
"We encourage POSCO to reinstate the former Sammi workers as directed by the Seoul High Court in January 1999. We are concerned that POSCO has not reinstated the workers despite rulings by the High Court and the Central Labor Relations Commission to reinstate the workers and promises by Korean President Kim Dae-jung to reinstate them.
"We believe that POSCO has an opportunity to take a positive step to promote good labour relations with its employees by resolving the Sammi case. We hope that POSCO is not underestimating the potential to impact negatively the company's reputation and employee relations if it does not abide by the Seoul High Court's ruling to reinstate the former Sammi workers. Such an impact could pose financial risk to the company." Read more on Sammi workers in Metal World No. 2/2000
The letter, written by the president of WAM, Geeta Aiyer, is addressed to the Chairman and CEO of the government-invested Pohang Iron & Steel Company, which bought Sammi Specialty Steel in December 1996 and illegally refused to extend employment to the active trade unionists.
The letter states:
"We are writing on behalf of our clients who own 7,000 shares in Pohang Iron & Steel Co. Ltd. (POSCO) to express concern about POSCO's treatment of former workers of Sammi Specialty Steel Co. Along with our clients, we believe workers should have the right to collectively bargain with their employers if they so choose, and workers and employers should respect collective agreements. We understand that since 1997 POSCO has not rehired approximately 245 former Sammi workers after the POSCO subsidiary Changwon Specialty Steel Co. purchased the company, contrary to the collective agreement that had been in force for over ten years with the workers and their union, the Sammi Specialty Steel Workers' Union. We understand that many of these workers were active union supporters, including union officials and shop stewards.
"POSCO's treatment of the Sammi workers appears contrary to the company's stated goal of abiding by international standards in its operations. POSCO's website states: 'We should not stick to our old rules. Today, we can survive only if we transform ourselves to accept global standards.'
"We are concerned that a committee of the International Labour Organisation investigated POSCO for alleged infringement of trade union rights and recommended that the Korean government take necessary steps to secure their reinstatement. We note, however, that in 1998 Asia Business magazine ranked POSCO second out of over 240 Asian companies for being a good employer, and eighth overall for being honest and ethical. We believe that POSCO's good reputation is threatened by the Sammi case.
"We encourage POSCO to reinstate the former Sammi workers as directed by the Seoul High Court in January 1999. We are concerned that POSCO has not reinstated the workers despite rulings by the High Court and the Central Labor Relations Commission to reinstate the workers and promises by Korean President Kim Dae-jung to reinstate them.
"We believe that POSCO has an opportunity to take a positive step to promote good labour relations with its employees by resolving the Sammi case. We hope that POSCO is not underestimating the potential to impact negatively the company's reputation and employee relations if it does not abide by the Seoul High Court's ruling to reinstate the former Sammi workers. Such an impact could pose financial risk to the company." Read more on Sammi workers in Metal World No. 2/2000