No Sign of Resolution in Diageo's 'Labor-Management Conflict'... Will Internal Strife Prolong?

Signs of Prolonged Labor Dispute at Diageo Korea
Union on Total Strike Since Last Month..."Compliance with Labor Laws"
Demands Include Wage Increase Proposal, Withdrawal of Personnel System and Brand Sale

The launch ceremony for the Diageo Korea Labor Union general strike held in front of IFC Mall in Yeouido, Seoul on the 25th of last month. Photo by the Federation of Korean Trade Unions National Food Industry Labor Union Federation

[Asia Economy Reporter Song Seung-yoon] The labor-management conflict at Diageo Korea, the country's largest whiskey importer, has entered a prolonged phase with no signs of resolution.

The Diageo Korea Labor Union, an industrial union under the Federation of Korean Trade Unions' National Food Industry Labor Union Federation, held a rally on the afternoon of the 16th in front of the Cecil Theater in Jung-gu, Seoul, urging the management to comply with labor laws. The Diageo Korea union stated, "Under the pretext of management and personnel rights, one-sided violence has worsened labor relations at Diageo Korea," and urged, "The management should repent quickly and comply with and implement labor laws and collective agreements."

They claimed, "The Diageo Korea management violated the principle of good faith by shifting the responsibility for poor business performance onto union members and refusing to disclose legitimate data using global excuses," and "Despite the union's opposition, they unilaterally enforced a personnel system that deteriorates workers' rights and interests."

The Diageo Korea union launched a general strike on the 7th of last month after wage and collective bargaining negotiations with management broke down. On the 28th of the same month, they held a general strike kickoff rally in Yeouido and have continued their industrial action since then. Union members participate in the strike alternately, starting with production workers. Their demands are mainly threefold: acceptance of the wage increase proposal presented by the union during wage negotiations, full withdrawal of the revised personnel system, and complete cancellation of the brand sale plan.

During wage negotiations, the union proposed a 7.2% wage increase, while management insisted on 2.8%, failing to narrow the gap. The union also opposes the new personnel system implemented at the end of last year, which includes expanding the performance-based system and changing promotion methods, arguing that it could cause mutual disadvantages and is applied unfavorably to the majority of employees. They are also demanding an explanation from management regarding rumors of the sale of Diageo Korea's flagship Windsor division.

Diageo stated that although the partial strike does not significantly disrupt business operations, they will engage sincerely in negotiations and strive to resolve the issue. A Diageo Korea official said, "Management has currently proposed an additional wage increase offer, and negotiations are ongoing," adding, "We will continue dialogue to understand each other's positions and work toward resolving the problem."

This content was produced with the assistance of AI translation services.