K2 pressed to cancel layoff plan

K2, the country’s largest maker of outdoor gear, is drawing protest from organized labor rights groups for its intention to dismiss all production workers here and move plants to Indonesia where labor costs are cheaper.

But the company said nothing has been decided yet, adding it will not dismiss workers unless absolutely necessary.

In a press conference held in front of the Seoul District Employment and Labor Office, Monday, the Korea Chemical and Textile Federation (KCTF) called on K2 to immediately withdraw its layoff plan.

It also urged the government to inspect the outdoor maker’s labor practices, arguing its management has been engaged in a range of illicit activities over the years to exploit employees.

“K2 should scrap its plan to lay off 93 workers and relocate production facilities to Indonesia. It should hold talks with labor representatives to resolve the ongoing labor-management conflict in a peaceful and mutually-beneficial manner,” the federation said in a statement. “K2 said it has to move to the Southeast Asian nation to stay afloat. But the company makes considerable yearly profits and has emerged as the No. 3 outdoor maker in the country. Under such circumstances, there is no plausible reason for the firm to dismiss its employees.”

It said, despite low wages and poor benefits, K2 workers have worked hard to turn the company into a leading leisure clothes manufacturer. “They have also suffered a range of illnesses due to poor working conditions as they often inhale adhesives and other harmful chemicals used in the manufacturing process. Considering their contributions, it is simply wrong for management to let workers go.”

Illegal layoffs?

KCTF Secretary General Lim Yeong-kook said K2’s dismissal of 93 workers is against the law.

“Under the Labor Standard Law, companies are only allowed to dismiss employees when its business is in a crisis. But K2’s business is now better than ever before. Also, the firm is obliged to make efforts not to fire workers. But it has not made such attempts at all,” Lim said.

“The company is forcing workers to accept a voluntary retirement program by March 31, which offers only one-year salary in compensation. But this is just outrageous. The government should get involved to stop K2 from firing workers.”

But K2 said it has no plan to lay off all production employees.

“It is true that we have offered workers a voluntary retirement program to move plants to Indonesia. But we have not and will force anyone to quit,” a K2 spokeswoman said. “Unfortunately, the labor union is refusing to talk with us. The company will take all possible measures to minimize the layoffs and find a win-win solution.”