Purmil Union Holds Rally Condemning Management... "Open the Way for Workers' Survival Including Public Sale"

Purmil Union Holds First Rally Since Business Closure Notice
"The Cause of This Crisis Lies in Management's Incompetence"
Union Demands Withdrawal of Layoff Notice and Public Sale Process

Union members of Purmil, opposing the business closure and layoff notice, held a rally on the 26th in front of the headquarters in Yeongdeungpo-gu, Seoul, urging the immediate withdrawal of the unilateral business closure and layoff notice and calling for the resumption of the sale process. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Song Seung-yoon] The Purmil labor union held a rally protesting the company's business closure and layoff notice, condemning the management.

On the 26th, starting at 12 PM, the Purmil labor union held a resolution rally in front of Purmil headquarters in Yeongdeungpo-gu, Seoul, attended by about 100 union members to prevent layoffs. Union members from Purmil and the Korean Federation of Chemical Workers' Unions held placards with slogans such as "Layoffs are murder. Withdraw the layoffs" and urged, "Even now, please open a path for workers to survive through public sale procedures."

The union stated, "The management is trying to ruin the households of all 360 Purmil employees, subcontractors, farmers, and delivery drivers," and criticized, "A solid company with sales exceeding 300 billion won in 2012 has been stuck in the mud because the owners were busy looking out for their own interests despite the workers doing their best."

They added, "Although Purmil recorded a profit under the professional management system in 2018, sales have declined and operating losses have been recorded since CEO Shin Dong-hwan took office in 2018," and declared, "The cause of this situation is entirely due to the management's poor decisions."

They further urged, "The union and all employees demand the immediate withdrawal of the company's unilateral business closure and layoff notice, which threaten the survival rights of workers, delivery drivers, and dairy farmers, and call for the resumption of the sale process."

Union members of Purmil, opposing the business closure and layoff notice, held a rally on the 26th in front of the headquarters in Yeongdeungpo-gu, Seoul, urging the immediate withdrawal of the unilateral business closure and layoff notice and calling for the resumption of the sale process. Photo by Hyunmin Kim kimhyun81@

The Korean Federation of Chemical Workers' Unions also stated in a press release that "The management's notification of layoffs to all employees as a business closure rather than corporate liquidation appears to be an attempt to avoid returning corporate tax benefits due to operating losses and to pursue resale in the future," and "We repeatedly urge transparent disclosure of the reasons and process for the failed sale, withdrawal of the unilateral layoff policy, and negotiations to explore alternative options such as resale."

The day before, farmers held a rally in front of Purmil headquarters condemning the closure and demanding the survival rights of dairy farmers. These farmers have supplied raw milk to Purmil for over 40 years since 1979 but will lose their supply destination overnight due to the business closure. Farmer representatives requested a meeting with Purmil CEO Shin Dong-hwan on that day, but the meeting did not take place. They claim that after receiving a certified notice of raw milk supply termination from Purmil, they have requested a meeting with CEO Shin but have received no response.

Earlier, Purmil decided to close its business on the 30th of next month and sent emails notifying about the business closure and layoffs to over 400 employees on the 17th. The reason given was the continuous losses over several years, a sharp decline in sales due to the COVID-19 pandemic, and an inability to find a solution to the accumulated deficits. LG Household & Health Care had previously attempted to acquire Purmil but ultimately failed.

The impact of Purmil's business closure is growing. Approximately 360 Purmil employees who received layoff notices, 50 subcontractor employees, about 150 delivery drivers, and over 500 agency store owners and employees, as well as dairy farmers, totaling more than 1,000 people, will be directly affected. Retailers who had supply contracts with Purmil for private brand (PB) products are also seeking alternative suppliers. There is also speculation that some groups, including institutional catering companies and the military, which still have contracts, may file lawsuits.

Since the business closure notice on the 17th, the Purmil website has been inaccessible. Purmil is a dairy processing company famous for products such as "Bifidus," "Milk with Black Beans," and "Banana Kick Milk." It was spun off from Lotte Dairy under the Lotte Group in April 2007 and changed its name to Purmil in 2009. Since last year, the company has been solely operated by CEO Shin Dong-hwan, the second son of Chairman Shin.

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