Cheongju, South Korea, Sept 03: Swiss multinational Nestle today joined the growing list of foreign firms bristling at labour unrest, saying it is considering pulling out of South Korea as a result. Nestle, operating in South Korea for more than two decades, has already closed its local headquarters in Seoul.
"Our head office has instructed US to consider legal steps for the closure of Nestle's plant in South Korea," a Nestle Korea spokeswoman said. She said Nestle's management was exasperated by "reckless" labour action by workers affiliated with the Korean Confederation of Trade Unions (KCTU), a militant labour group.
The group has led a wave of labour strife, demanding shorter working hours and union participation in management decision-making, which has already led to the closure of four foreign-invested firms operating in South Korea this year. Nestle Korea's 460-member union went on strike on July 7 demanding a 11.7 percent pay hike and a say in management. The company has proposed a 5.25 percent wage increase.
About 400 striking workers, however, ignored the company's warning and vowed to stage an "uncompromising" struggle during a rally at the plant here in Cheongju, 140 kilometers south of Seoul.
The strikers wearing red headbands waved flags or raised their fists into the air, chanting "job security" and vowing to continue their walkout. Bureau Report