[vol.7] Voices from the Field_Unemployment By Shut Down - Nobody is Safe

Unemployment By Shut Down - Nobody is Safe

Choi Ae Ran(Ex-head of Seoul Regional Union of AMK Union)

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I used to work for AMK (Afride Magnetics Korea Co) situated in the Kuro Industrial Complex No. 2 but I was dismissed due to the factory shut down on February 3rd. AMK is a branch of the AMC group, a 100% foreigner investing company opened in 1968.

The once large company that employed some 6,700 workers, has constantly downsized in line with the policy of foreign-invested companies to move in search of a low-wage work force in developing countries in pursuit of profit. In the end, the factory shut down the Chunchon factory in 1994 and the Seoul factory in 1996. On February 3rd, the number of employees was 76 in Seoul, 800 in Chonju, 400 in AMK China branch, and 300 in a subcontract company.

The main products are large and small computer heads and the company holds pure capital of 39 billion without debt. The moving of the AMK Seoul factory, that had been rumored since 1990, was set into motion when the company announced at the joint labor-management conference in January 12th of this year that it had finished all administrative measures.

In reply the labor union demanded that the company comply with the collective agreement which guaranteed a period of three months to prepare for job changes. Yet the company announced the plan for the move while the fifth joint labor-management conference was being held.

Without considering the fact that the workers lost the will to work due to such an announcement, the company kept threatening that it would withdraw its plan to wait till the end of February. It threatened that, "we will shut down on January 29th and then, "We will shut down on February 1st".

Without giving any thoughts to the effect on some 70 workers' lives, the date of closing down changed four times within one month. Then on February 3rd, a letter of dismissal was sent to all workers except for four in the General Affairs Department and the Business Department.

After our dismissal on February 3rd, about 70 workers continued to come to the factory, where the water and electricity had been cut, everyday to keep the company from removing the machines.

In addition, we set about publicizing our situation to expose the unjust dismissal due to the factory shut down, and demanded continuing negotiations with the company. Yet the company insisted that it could not negotiate with dismissed workers and that the matter of going against the collective agreement and the justness of dismissal by shut down should be decided according to the law.

The company at first proposed 200% compensation for workers with less than 5 years of service, and 300% for workers with more than 5 years. Yet, after a tight struggle with the company, we agreed on 300% compensation for workers with less than 5 years of service, 410% for those with more than 5 years, and 450% for those with more than 15 years of service. Also, a welfare fund set up through profits from vending machines and other sources was given to the labor union.

It seems that the company could be so confident while closing down because the government is relaxing regulations concerning dismissals. In such a situation, the fired workers are not protected at all according to the law. We are only angry and sorry with the reality that the companies that pursue only profits are sheltered the by law, while the common and diligent workers are often driven to the streets.

Through this fight, we felt that this problem of employment instability is not just the problem of small and medium industries but also that of large industry workers. If we do not recognize that employment instability is the problem of all workers and prepare a systematic resolution, nobody will be excluded from the possibility of facing unemployment through factory shut downs.