As SK chemicals moves forward with the sale of its pharmaceutical division, labor unions have declared their opposition to the sale.
The union has made clear its opposition to the sale, saying that workers will have to bear the brunt of the restructuring and damages caused by the planned sale.
SK chemicals recently signed a memorandum of understanding with the private equity firm, Glanwood Private Equity (Glanwood PE), to sell its pharmaceutical unit. The sale is expected to be worth about 600 billion won ($447 million).
SK chemicals' business divisions are divided into Green Chemicals, which produces eco-friendly chemical materials, and Life Science (pharmaceutical business unit), which develops and produces pharmaceutical products.
When media reports revealed the sale on Sept. 21, SK chemicals issued a clarification statement and admitted it.
"We are considering the sale of the pharmaceutical division and have signed a memorandum of understanding between the parties involved to determine basic matters before signing this agreement," the company said.
However, SK chemicals' move to sell its pharmaceutical division immediately ran into its union’s opposition. On Sept. 25, the SK chemicals trade union of pharmaceutical, clerical, and sales workers issued a statement saying.
"We strongly condemn the sale of the pharmaceutical division and will resolutely oppose the sale by any means available to the union," it said.
In addition, the Daejeon-North Chungcheong Banch of the Metalworkers' Union and the SK chemicals branch also declared their struggle against the sale. On Wednesday, the metalworkers' union held a declaration ceremony in front of SK chemicals' headquarters in Bundang-gu, Seongnam, Gyeonggi Province.
"The members of SK chemicals were outraged by the media reports that the company would be suddenly sold without anyone's knowledge. The workers' employment and working conditions are threatened in the face of the numbers game of dividing and selling the company," the industrial union said. "The Metalworkers' Union will stop the sale of SK chemicals' pharmaceutical division and protect the lives of the workers."
SK chemicals' labor-management agreement requires the company to notify the union in advance of any division or sale and to consult in good faith. However, the company ignored the collective agreement and proceeded with the sale without anyone knowing it, the union said. The union is outraged at SK chemicals' management for pushing through the sale while tearing up the collective agreement made by labor and management, it added.
The metalworkers' union went on to say, "Moreover, the other party to the sale is a private equity fund called Glenwood PE. Many companies acquired by private equity funds have experienced serious conflicts due to restructuring. Private equity funds acquire a business and sell it at a high valuation to make a profit. Inevitably, restructuring occurs in the name of cost reduction and management efficiency. Workers bear the brunt of the damage."
The union criticized the company for failing to honor the hard work of the workers, secretly promoting the sale, and posing a serious threat to employment and working conditions.
“The metalworkers' union will not allow the company to unilaterally split and sell the company. A sale that excludes the workers will never go according to the company's plan, and no matter what capital takes over, it is difficult to expect amicable labor relations,” it added.