Korean Steel Workers Get Important Victory for Worker's Rights

Labor Commission Rules against Layoffs of Korean steel workers

Under the international solidarities including all workers world wide as well as trade unions like the International Metal Worker's Federation(IMF), the Canadian Telecommunications Workers Union(TWU), CFMEU and many foreign worker's organizations such as the Western Hemisphere Workers Conference Against NAFTA, MAI and Privatizations, the almost a yearlong struggle of Sammi Steel workers, who are associated with democratic Korean Federation of Metalworkers' Unions(KFMU), for their job security have achieved a important victory on December 9.

Relating to a appeal case submitted by a local steel maker's workers, layoffs during mergers and acquisitions (M&A) between companies should be considered a violation of labor laws, the Central Labor Relations Commission ruled , on December 9.

In a decision which runs counter to previous Supreme Court rulings, the commission ordered Changwon Steel Co., a subsidiary of the world's largest steel maker POSCO established to take over Sammi's operations, to hire all workers of Sammi Steel it had taken over.

The authority commission said that "it is an unfair dismissal," for Changwon Steel Co. to have failed to reemploy 201 workers at two manufacturing plants, specialty steel bars and tubes & pipes, of Sammi Steel Co. after the former took over the latter. The commission said the M&A process between Changwon and Sammi steel makers includes the takeover of labor relations as well as assets at the company.

Under the article 27 the Labor Relations Commission Act, Changwon Steel Co. should take on the duty for job stability of all employees at Sammi Steel Co. even after their M&A process. Changwon Steel can submit a appeal against the award within fifteen days after information of this decision with the Chairman of the Central Labor Relations Commission to be the defendant. However, the commission act provides that execution of the awards shall not be suspended because of the appeals under this Act.

The commission's decision, siding with the workers, on employment continuity case in the process of the M&A will encourage many workers, whose fears of layoffs are mounting in business restructuring and M&As.

Kim Chang-nahm, President of Sammi Steel Trade Union, thanked you for supports of many persons and trade unions, both local and international levels on the 9th of Dec. (Korea Progress News, DEC. 10, issued by International Politics & Economy Center of Korea, IPECK)

International Politics & Economy Center of Korea(IPECK)
URL : http://ipeck.cpnet.or.kr
E-mail : ipeck@unitel.co.kr
TEL : +82-2 986-0025
FAX : +82-2 986-0065
President : Lee Chang-soo
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