Facing Backlash
Qingdao Doublestar Chairman Chai Yongsen said at an interview on March 19 that he has heard nothing about matters related to collective agreement and labor union except for employment continuation for three years.
Earlier, Kumho Tire Chairman Kim Jong-ho mentioned, while trying to persuade unionized Kumho Tire workers, that collective agreement, labor union, and employment continuation will be guaranteed by the Chinese company even after it takes over their company.
At the interview, the chairman of the Chinese company mentioned nothing about employment guarantee for more than three years despite questions from reporters.
Doublestar Tire and Kumho Tire creditors recently agreed to maintain the employment of Kumho Tire workers for three years once Doublestar Tire acquires Kumho Tire. When it comes to labor union and collective agreement, Doublestar may have paid no attention from the beginning or Kumho Tire employers and creditors may not have provided adequate information.
Doublestar invited the South Korean reporters to China and held the interview in order to get the upper hand in attempting to take over Kumho Tire. However, opinions against the deal are increasing after the Qingdao Doublestar chairman’s remarks.
The unionized workers are dead set against the acquisition. According to them, the three-year employment guarantee cannot be trusted if Doublestar does not recognize their union and refuses to accept their collective agreement with Kumho Tire employers. In addition, they are saying that Doublestar’s acquisition of Kumho Tire will result in more production in China and less production in South Korea and then their job security will be jeopardized. The unionized workers are planning to go on a strike from March 20.