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4 August, 2005ICEM news release No. 34/2000
Chemicals and pharmaceuticals multinational Novartis stands accused of anti-unionism and bad faith bargaining in Korea.
Local subsidiary Novartis Agro Korea (NAK) has an "anti-labour business system and philosophy," says the Korean Chemical and Textile Workers' Federation (KCTF). At the global level, the KCTF is affiliated to the 20-million-strong International Federation of Chemical, Energy, Mine and General Workers' Unions (ICEM).
Last October, the KCTF organised a company-level union at NAK. The management responded by transferring all union activists away from the company's headquarters to remote branch offices. By the use of threats, it also forced 20 of the new union's original 76 members to withdraw from the union.
Management then ignored all collective bargaining requests by the company-level union, which therefore mandated the KCTF to negotiate on its behalf.
After a campaign which included protests from the company's customers, as represented by the Korean Farmers' Association, NAK reluctantly agreed to open negotiations with the KCTF. However, it still refused to recognise the company-level union.
So union members in the sales department launched a strike on 6 March, and three days later this industrial action spread to the company's Iksan factory. After 14 days, NAK promised to bargain in good faith, and the strikers returned to work.
In fact, though, the company tabled an offer below what it had proposed to the KCTF before the strike. The union reports that its members are now "getting angry" over the company's bad faith.
Novartis Agro Korea's opposition to wage bargaining is in breach of Korean law, the KCTF says.
NAK's reluctance to recognise the union is, the KCTF points out, partly due to the "abnormal employment system" in the Iksan factory. Only 69 of the workers there are on permanent contracts. The other 130 are temporary. This set-up is "against Korean business culture," the union says, and "reflects NAK's intention to hire and fire at will."
The KCTF is continuing its campaign for real collective bargaining, and says it is confident of victory. It points out that a defeat for "NAK's illegal activities" would strengthen the hand of all Korean workers employed by multinationals.
Local subsidiary Novartis Agro Korea (NAK) has an "anti-labour business system and philosophy," says the Korean Chemical and Textile Workers' Federation (KCTF). At the global level, the KCTF is affiliated to the 20-million-strong International Federation of Chemical, Energy, Mine and General Workers' Unions (ICEM).
Last October, the KCTF organised a company-level union at NAK. The management responded by transferring all union activists away from the company's headquarters to remote branch offices. By the use of threats, it also forced 20 of the new union's original 76 members to withdraw from the union.
Management then ignored all collective bargaining requests by the company-level union, which therefore mandated the KCTF to negotiate on its behalf.
After a campaign which included protests from the company's customers, as represented by the Korean Farmers' Association, NAK reluctantly agreed to open negotiations with the KCTF. However, it still refused to recognise the company-level union.
So union members in the sales department launched a strike on 6 March, and three days later this industrial action spread to the company's Iksan factory. After 14 days, NAK promised to bargain in good faith, and the strikers returned to work.
In fact, though, the company tabled an offer below what it had proposed to the KCTF before the strike. The union reports that its members are now "getting angry" over the company's bad faith.
Novartis Agro Korea's opposition to wage bargaining is in breach of Korean law, the KCTF says.
NAK's reluctance to recognise the union is, the KCTF points out, partly due to the "abnormal employment system" in the Iksan factory. Only 69 of the workers there are on permanent contracts. The other 130 are temporary. This set-up is "against Korean business culture," the union says, and "reflects NAK's intention to hire and fire at will."
The KCTF is continuing its campaign for real collective bargaining, and says it is confident of victory. It points out that a defeat for "NAK's illegal activities" would strengthen the hand of all Korean workers employed by multinationals.