The Swedish auto parts maker Autoliv is reportedly planning to cut the number of workers at its Wonju plant by a quarter by 2022.
According to the Labor Today, the company's labor union criticized Autoliv for inducing negative management by returning the highly profitable air bag to the Hwasung plant where Korea's headquarters is located and leaving only the low-reward seat belt at the Wonju plant. All production workers at the Wonju plant are union members.
Autoliv workers, who recently voted in favor of the strike, are preparing to fight against the Swedish headquarters, calling for measures to stabilize employment.
Autoliv recently announced a plan to cut jobs at its Wonju plant. The reason that the company has put forward is failure of the receipt of new product order.
When the company failed to acquire new product order in late August, it informed the union of its plan to liquidate 167 of its 196 workers in Wonju by 2022.
Autoliv took over Delphi Korea Wonju Plant, which produces air bags and safety belts, in 2010. Three years later, Autoliv decided to produce air bags at Hwasung plant where Korea's headquarters are located and seat belts at Wonju factory in the name of the product-specialization project.
"The company reduced the number of workers working at the Wonju plant from 500 to 200 in 2013 by converting highly profitable airbags to the Hwasung plant. In violation of the labor-management agreement on the distribution of production volumes, the company deployed 40 percent of the new product production of Wonju plant in the Thailand-based plant last year, inducing bad management," asserted Labor Union leader Eom Tae-wook.
The labor union voted in favor of the strike, with 181 of its 196 members attending. 170 (94%) voted in favor. "We are going to fight against Sweden's headquarters to guarantee employment," a union official said.