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28 June, 2001The Federation of Korean Metalworkers' Trade Unions says that the Volvo Construction Equipment Group is violating the collective agreement.
KOREA, REP: On June 6, the Volvo Construction Equipment Group (VCEG) announced worldwide layoffs which would cost about 950 jobs. According to the plan, Volvo Construction Equipment Korea will eliminate up to 120 jobs, or nearly 9 per cent of its total workforce.
Labour and management at Volvo Construction Equipment Korea (VCEK) held 12 rounds of wage negotiations between April 30 and June 4, but the situation has worsened since the announcement of the layoff plan. Even though the collective agreement is still in effect and the company is recording a surplus for a second consecutive year, management unilaterally notified the union of the layoff plan and threatened it would close plants if the union goes on strike.
In the 16th round of negotiations, on June 26, the union made considerable concessions but management insisted that the issue is non-negotiable.
It is the official position of the Federation of Korean Metalworkers' Trade Unions and the VCEK union that VCEK management has clearly violated the collective agreement. The gap between the two bargaining parties was so wide that the VCEK union had no choice but to go on strike.
Labour and management at Volvo Construction Equipment Korea (VCEK) held 12 rounds of wage negotiations between April 30 and June 4, but the situation has worsened since the announcement of the layoff plan. Even though the collective agreement is still in effect and the company is recording a surplus for a second consecutive year, management unilaterally notified the union of the layoff plan and threatened it would close plants if the union goes on strike.
In the 16th round of negotiations, on June 26, the union made considerable concessions but management insisted that the issue is non-negotiable.
It is the official position of the Federation of Korean Metalworkers' Trade Unions and the VCEK union that VCEK management has clearly violated the collective agreement. The gap between the two bargaining parties was so wide that the VCEK union had no choice but to go on strike.