By Kim Tae-jong
The chairman of Hanjin Heavy Industries and Construction (HHIC) apologized Wednesday for the firm’s longstanding dispute with unionists and vowed to make every effort to seek compromise and revive his firm.
His remark immediately drew skepticism from labor unions as they countered that without action his words will only aggravate the situation and he has no sincere intention to resolve the dispute.
“I sincerely apologize to the public for causing concerns about the difficult situation within my company,” Cho Nam-ho told reporters at the Busan City Hall. “I’ll make every effort to find a solution to the dispute and revive the company.”
It was his first public appearance since last December when the labor union went on strike, protesting the firm’s massive layoffs. He had remained abroad for almost two months until last week.
Cho said the layoffs were “an inevitable choice” to revive the firm, adding he has no intention to withdraw the plan.
“Retracting the layoffs means the firm should go back to the stage of ‘no competitiveness’ and give up on its survival,” he said.
Instead, he offered a full university scholarship to two children of the employees who had voluntarily chosen to leave the company.
But civic groups and labor unions, expecting him to come up with more fundamental solutions, denounced his suggestions.
“What he did was simply win more public support for the firm and deceive unionists,” the Korean Confederation of Trade Unions (KCTU) said in a statement. “It is obvious that he won’t withdraw the layoffs and ignores our demands for a peaceful solution.”
The KCTU demanded the government punish him for “ignoring his duty to save the firm and protect its employees.”
Severely criticized for staying abroad with no clear business purposes for nearly two months, Cho ignored mounting calls from civic groups, labor unions and politicians for his early return to resolve the labor struggle.
He even has long rejected the National Assembly’s repeated demands to present himself to discuss the labor-management dispute in his company.
Meanwhile, unionists from the company continue to protest, including female labor activist Kim Jin-suk, who has been atop a giant crane for about seven months at the shipyard in Busan in opposition of the layoffs.
Citizens and civic groups have also held the “Hope Bus” campaigns in support of Kim and other unionists, making the dispute between labor and management one of the biggest social issues of late.
In response, Cho said his long stay abroad was part of his efforts to revive his firm with more orders and he will soon present himself to the National Assembly.