BAT Korea-labor to be strike-free for three years

BAT Korea’s CEO Guy Meldrum, left, and Goo Seong-il, the company’s Sacheon factory union leader, pose after the two signed a declaration of labor-management cooperation at the company’s head office in Yeoksam, southern Seoul, Monday. They agreed to establish industrial peace, ensuring a strike-free three years ahead. / Courtesy of BAT Korea

By Park Jin-hai

The union of British American Tobacco Korea’s (BAT Korea) factory in Sacheon, South Gyeongsang Province, agreed Monday with management to refrain from engaging in industrial action for the next three years.

Goo Seong-il, the union leader, said they had agreed to the declaration after reaching a mutual understanding with management on the need for the factory to pursue sustainable growth.

“The tobacco industry has recently faced several difficulties, which have resulted in a drop in the volume of cigarettes produced,” Goo said. “We are also experiencing intensified competition among BAT Group production facilities. At this critical juncture, labor and management agreed to cooperate for sustainable growth.”

BAT Korea CEO Guy Meldrum and Goo took part in a signing ceremony at the company’s head office in Yeoksam, southern Seoul, and agreed to three strike-free years.

The harmonious relationship stems largely from the company’s efforts to ensure that talented factory workers can climb up the corporate ladder, say industry sources.

Thanks to programs like “Operations Growth Academy,” where employees can continue their studies ― for example, by earning a mini-MBA from Pusan National University ― 67 percent of the factory’s managers have previously worked on its production lines.

So far 81 employees have joined BAT Group’s overseas facilities since 2007.

“Both parties are looking forward to finding out how much more we can achieve as a result of this agreement,” said Executive HR Director Kim Hae-in, adding that collaborative efforts between the union and the company would enable BAT Korea to produce more products for export markets, maintain stable employment conditions and create more investment opportunities.

Since its establishment in 2002, BAT Korea’s Sacheon factory has set an example for BAT facilities worldwide for quality and productivity.

Last year the Korea International Trade Association (KITA) recognized BAT Korea for surpassing the $30 million mark in exports and for its outstanding contributions to the local and national economies.

BAT Korea, founded in 1990, produces brands including Dunhill, KENT, Lucky Strike and Vogue. The company employs about 1,000 people.