Unionists ascribe post-merger action to save compensation

Baxter Korea, the Korean offshoot of the U.S.-based pharmaceutical company, is forcing its employees to resign, under the disguise of resignation under advice, unionists say.

According to the Korea Democratic Pharmaceutical Union, Baxter Korea which specializes in healthcare, renal and hospital products, urged seven employees to leave the company last Friday. It handed out resignation letters in English to these employees, forced them to sign them, and submitted their translated versions Tuesday.

The unionists said this is a ploy aimed to reduce compensations for sacked employees, pointing out that the company needs to trim its workforce in the aftermath of the merger with Gambro.

The company says it is neither voluntary retirement nor layoff. However, the union points out that the resignation under advice is just a trick. In the case of voluntary resignation, the company has to pay compensation amounting to the industry’s average by law, and the management has no justifiable reasons to dismiss them, the union said.

It cited the management’s inconsistent offering of reasons. At first, the company ascribed it to flat performances, and later they failed to offer clear criteria or explain concrete reasons, saying the performance was not the only criteria, it said.

The KDPU has criticized the company for trying to weasel out of paying employee compensation packages amid the ongoing restructuring after its merger with Gambro, the Korean branch of the Swedish company.

The KDPU and the Baxter union are demonstrating at the company headquarters on the 10th floor of the Kyobo Building in Gwanghwamun, downtown Seoul, and plan to hold a rally to denounce Baxter’s forced kick-out.”

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