Planned Pernod Korea strike abandoned

A strike planned by union members of Pernod Ricard’s South Korea arm has been abandoned after the group backtracked on its early retirement plan.

A strike planned by Pernod Ricard Korea union members has been abandoned after the company claimed laid-off workers would be reinstated

It was revealed last week that Pernod Ricard Korea labour union workers intended to strike today (26 January) over what they claimed were “forced” layoffs.

A number of employees have left the company under its Early Retirement Programme (ERP), with 60 jobs cut between 2000 and 2006 and 80 between 2007 and last year.

However, a spokesperson for Pernod said that the ERP application has been “wholly voluntary” and that the company had recommended employees to “consider the application positively” but did not “exert any coercion to apply”.

According to The Korea Times, Pernod Korea has now reinstated all employees who would have been laid-off under the current implementation of the scheme.

Kim Guee-hyun, labour union leader, told the publication that workers had a meeting with Pernod Korea CEO, Jean-Manuel Spriet, who said that he would “create a new team tasked to develop a new market for Absolute Vodka”.

“Those subject to the layoffs will work on the team,” said Guee-hyun. “I’m very pleased to see the issue was settled peacefully.”

However, he added: “The union’s confidence in management was totally devastated. I think we need someone to take responsibility for this.”

Pernod Ricard is currently embarking on a cost cutting plan called Project Allegro in an attempt to save 150 million euros over the next three years.

It was reported last week that the group was also considering a reorganisation of it French distribution units – a move that could lead to around 60 job losses.