hankyoreh

The government called for an early end to sit-in protests and urged E-Land Group’s management and union to engage in negotiations on July 11. However, the unrest at E-Land is expected to devolve into a lengthy dispute following the breakdown in negotiations between management and the union on July 10.

The union’s sit-in happened as the group laid off more than 900 non-regular female cashiers at its affiliate retailer, Homever and New Core, just before non-regular protection laws went into effect on July 1. The group, instead, outsourced their jobs to workers from temporary agencies. The new law requires a company to grant its non-regular employees regular status after they have worked with the company for two years. Businesses have said that the regulation will bring financial burdens upon them.

After the failed negotiation, the union, which now occupies two stores, said it would occupy even more E-Land-affiliated stores in Seoul and the neighboring areas, adding, “We will have no choice but to increase the level of our struggle if our demands, including an end to the firing of contract workers and a reinstatement of previously-fired workers, aren’t accepted.”

In response, E-Land has filed a lawsuit against nine union leaders of its affiliate New Core to seek damages worth 500 million won (US$543,000), following a 110 million won lawsuit seeking damages against 62 unionized workers of E-Land on July 6.

Observers have said that one of main reasons for worsening labor relations at E-Land is that the management has not, in essence, acknowledged the union’s existence.

In 1997, the E-Land union walked off their jobs for 57 days because the union has not reached any collective bargaining agreements with the management for over 4 years since the union was first formed in 1993.

In 2000, the union staged strikes for 265 days, demanding that management improve working conditions for temporary workers. At that time, the Ministry of Labor asked a court to issue an arrest warrant against E-Land founder and chairman Park Songs on charges of conducting unfair labor practices. Despite several requests, Park did not respond to the warrant while staying overseas. The labor disputes have continued to deepen as Park travels overseas whenever there are important events in labor-management relations, union officials say, referring to him as the final decision maker of the management. Park is reportedly out of the country now.

Labor tension was aggravated when E-Land acquired New Core stores in 2003 and Carrefour stores in 2006. Choi Ho-seop, a union official, said, “There has always been friction as management has not honored its agreements with the union.” According to the Ministry of Labor’s May inspection reports on Newcore department stores, the management has violated 10 labor law provisions.

For example, New Core management can fire non-regular workers anytime it wants, by forcing them to sign contracts that leave the contract duration to the sole discretion of the management. In addition, the company did not compensate employees who chose not to use their annual paid vacation and forced employees to work on holidays without making an agreement with the union.

Some labor experts have accused the government of being too lenient in dealing with the E-Land management’s violations. New Core’s union has filed complaints with the Ministry of Labor since May, citing the company’s continued violation of labor laws. The ministry, however, has simply ordered New Core management to correct its law violations and carry out inspections, instead of enacting tougher measures such as filing a complaint with prosecutors.

Please direct questions or comments to [englishhani@hani.co.kr]