"Will Contribute to Job Security and Economic Recovery"
Follow-up Measures Needed to Prevent 'Asset Stripping' of Factory Sale Proceeds
Kim Myungseon, Vice President of Production Technology at Kumho Tire (left in the photo), and Hwang Yongpil, Representative Branch Chief of the Kumho Tire Branch, are posing for a photo holding the special labor-management agreement. Provided by Kumho Tire. Photo by Kumho Tire.
Economic and labor organizations in the Gwangju region stated that the recent labor-management agreement related to the reconstruction of the Kumho Tire Gwangju plant "will make a significant contribution to job security for workers and the recovery of the local economy."
On the 31st, the Gwangju Employers Federation issued a statement welcoming the agreement, saying, "We sincerely welcome the labor-management agreement on the reconstruction of Kumho Tire's Gwangju plant and the construction of the new Hampyeong plant. The fire at the Gwangju plant in May dealt a severe blow to the local economy, but this labor-management agreement has become a ray of hope in an otherwise bleak situation," the statement read.
They added, "Despite the major fire, the fact that an agreement was reached after over a month of intense discussions, based on the premise of job security for all members, is more valuable than any other achievement. This agreement will be recorded as a case that once again reminds our society of the importance of coexistence and cooperation." They continued, "The plan to restore the facilities at Gwangju Plant 1 to produce 6,000 units per day this year, and to build a new factory in the Bitgreen Industrial Complex in Hampyeong with an annual production capacity of 5.3 million units, will greatly contribute to job security for workers and the recovery of the local economy."
The Citizens' Countermeasures Committee for the Normalization of Kumho Tire's Gwangju Plant also issued a statement the previous day, saying, "As of the 73rd day since the fire, the Citizens' Countermeasures Committee has continued to urge Kumho Tire, including Doublestar, and government authorities to come up with responsible measures to prevent the aftermath of the Kumho Tire Gwangju plant fire from escalating beyond job insecurity to regional economic stagnation and even a crisis in the national manufacturing base." The statement added, "At last, the special labor-management agreement for the normalization of the Kumho Tire Gwangju plant, which the Gwangju community has been waiting for in unity, has been announced."
They continued, "The agreement promises job security for all Kumho Tire employees and guarantees the total domestic production volume, and also includes the plan to relocate the Gwangju plant to Hampyeong. This is a meaningful first step in responding to the concerns of the local community," they evaluated.
Furthermore, they stated, "However, there are still many challenges to resolve before complete normalization can be achieved. The responsible role of Gwangju City is urgently needed regarding the change of land use for the Gwangju plant's relocation to Hampyeong, and clear follow-up measures such as dedicating the proceeds from the sale of the Gwangju plant site exclusively to investment in domestic factories are necessary to dispel concerns about asset stripping." They added, "If it takes considerable time to sell the Gwangju plant site, a proactive and responsible role by Korea Development Bank, the second-largest shareholder, is required to ensure the swift relocation of the plant."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
