[Asia Economy Reporter Eunmo Koo] Diageo Korea has resolved the conflict that arose with the labor union over the sale of the whiskey brand 'Windsor'.
According to the liquor industry on the 5th, Diageo Korea reached a tentative agreement in the early hours of the 2nd for a labor-management agreement to pay all employees a severance bonus of 16 million KRW, guarantee employment, and succeed the collective agreement.
Diageo Korea decided to pay the severance bonus of 16 million KRW in a lump sum on the payroll date of the 25th of this month. All employees belonging to the existing corporation Windsor Global, which is being sold to the private equity funds 'Bayside Private Equity - Metis Private Equity,' and the newly established corporation handling the existing business are eligible.
An agreement was also reached on the succession of employment for all employees. Regardless of transfer to the existing or new corporation, labor and management guarantee five years of employment according to the contract at the time of sale, and the new corporation will discuss and finalize employment stability through the Employment Stability Committee. The labor union will operate as a single integrated union for the two companies.
The wage and collective agreement, which were negotiated together in this agreement, will also be succeeded by the two corporations as is. Diageo Korea labor and management set this year's wage increase rate at 7.2% and agreed to pay an additional lump sum of 4.5 million KRW. The wage increase will be applied from September this year, and the average wage increase rate for next year is set at 3.6%.
To promote mutual cooperation with the labor union, a mutual cooperation fund of 550 million KRW will be established for employees at Windsor Global. The management and execution of the fund will be entrusted to the labor union, which is expected to use the fund as consolation money for union members who did not receive wages due to strikes or other reasons.
Previously, Diageo Korea decided to leave the Windsor and W series business units with the existing corporation Windsor Global and sell it. The business units selling imported whiskey brands such as Johnnie Walker and dark beer Guinness will be separated into a newly established Diageo Korea corporation to continue the business.
Diageo Korea plans to complete the sale negotiations, which have been ongoing since December last year, by August at the latest.
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