Purmil Agency Owners Also Rally in Seoul... "Livelihood at Risk Due to Unilateral Notice, Demand for Measures"

On the afternoon of the 9th, at the nationwide franchise owners' rally condemning the termination of Purmil's business held in front of Purmil headquarters in Yeongdeungpo-gu, Seoul, franchise owners are holding placards and shouting slogans. Photo by Song Seung-yoon

[Asia Economy Reporter Song Seung-yoon] Purmil agency owners held a rally protesting Purmil's sudden business termination notice and condemned the company.

The National Purmil Agency Emergency Response Committee held a nationwide agency owners' rally condemning Purmil's business termination in front of Purmil headquarters in Yeongdeungpo-gu, Seoul, starting at 2:30 PM on the 9th.

About 50 agency owners from across the country attended the rally. They held placards and banners with phrases such as "All agencies will die. Guarantee our right to survive," and "Abuse of power ignoring agencies. Compensate for damages," urging, "Purmil must comply with the supply obligations specified in the sales agreement and compensate agencies for damages caused by the business termination."

The agency owners said, "We have made a living by supplying products made at Purmil's factory to schools and marts for over 30 years, but this measure has left us with no way to survive," adding, "We learned about this not through the headquarters but from the news, and we held this rally to express our grievance and anger."

Lee Chi-young, chairman of the emergency committee, criticized, "Purmil unilaterally decided to liquidate solely for the benefit of the major shareholder despite the contract period with the agencies still being valid," and added, "This barbaric measure has caused our agencies significant losses and pushed our livelihoods into uncertainty."

He continued, "Until now, the company has consistently responded with silence without any compensation measures," warning, "If reasonable measures are not prepared, we will use all means and methods to protect our rights."

Participation Solidarity also expressed solidarity, stating, "More than 1,000 people including agency owners, employees, and freight drivers have suffered great damage due to Purmil's unilateral decision," emphasizing, "How this situation is resolved will set a precedent for many agency business workers."

Rallies condemning Purmil's unilateral business termination continue in front of Purmil headquarters. Starting with a farmers' rally demanding the survival rights of dairy farmers on the 25th of last month, the next day on the 26th, the Purmil labor union held a rally opposing the company's business termination and dismissal notice.

Purmil labor and management have held a total of four rounds of negotiations so far. In the fourth negotiation held yesterday at the Jeonju factory with working-level staff and the union, discussions took place regarding the company's plan to proceed with a sale on the condition of a 30% restructuring proposed by the union. The working-level staff confirmed this and decided to report it to management. Whether to accept it will be determined by management's decision.

Earlier, Purmil decided to terminate its business on the 30th of this month and sent emails notifying all 400 employees of the business termination and layoffs on the 17th of last month. The reason given was that sales sharply declined due to the COVID-19 pandemic amid continuous deficits over several years, and accumulated losses grew without finding a way to overcome them. Previously, LG Household & Health Care attempted to acquire Purmil but ultimately failed.