The first labor union was created at Costco, a U.S.-based warehouse-style discount store. It has been 26 years since Costco entered Korea in 1994. Costco Korea's labor union began collective bargaining upon its establishment.
The Korean Confederation of Trade Unions' service federation, the Mart Industry Labor Union, said on Aug. 4 that Costco Korea's labor union was officially launched. Park Gun-hee, a Yangpyeong branch MD, was elected as the new head of the Costco union.
Costco, which was established in Seattle in 1983, is a warehouse-type discount store. Starting with Yangpyeong Price Club in 1994, Costco Korea currently operates 16 stores.
Last year, the company posted 4.17 trillion won ($3.5 billion) in annual sales, 134.5 billion won ($114 million) in operating profit and 96 billion won ($81.3 million) in net profit, respectively.
According to industry and labor circles, Costco Korea employs some 5,500 executives and employees, but has not allowed the establishment of a union over the past 26 years. "The working conditions and treatment of Costco workers are not as good as they look," the union said.
With the establishment of a labor union, the Costco union applied for collective bargaining with its headquarters on Aug. 3. The negotiation request will be formulated after a survey of all Costco employees.
kslee@koreaittimes.com
