The labor and management of HiteJinro, a distiller in South Korea, is having difficulties concluding collective and wage agreements for 2017. As of 17 October, labor and management had held 20 bargaining sessions. However, management mentioned that it could not conclude an agreement because the trade union demanded the resignation of an executive responsible for the collective agreement as a precondition for bargaining. Management also stated that the resignation of an executive is a matter to be decided by the company in accordance with its personnel and management rights, meaning the trade union was demanding something beyond their rights.
The trade union has been on strike even during the bargaining sessions. Management has sought to respond to the union’s wage proposal, stating that, unlike its first proposal which included a wage freeze, it is willing to increase the base payment. It explained that the company had already increased wages at the beginning of this year by reflecting a 3.5% increase in ordinary wage, but the company will consider another increase. Management also proposed an employment guarantee to the trade union.
Nonetheless, the union has continued to demand a 7% increase in wages and insisted that the increase at the beginning of this year and the employment guarantee are simply perfunctory. As negotiations have repeatedly broken down, as of 20 October the trade union has been continuing its strike. Management said that “the continuous strike has led to falling product supplies to our customers and has damaged to the company’s credibility.”
HiteJinro explained that “collective bargaining agendas and the company’s personnel and management rights are distinct matters. The company would like the union to return to negotiations as soon as possible and to conclude an agreement.”