March 14, 2000
**Urgent Solidarity Appeal**
Sammi Workers March On Seoul
International Solidarity Needed to Win Back Their Jobs
On March 14, some 40 Sammi workers marched into the streets of Daejon, one of the largest cities in Korea, geographically at the centre of south Korea. On the same, another group of 40 workers marched into Chongju.
In these two cities, they were met, welcomed, and joined by unionists to hold joint demonstrations.
The march is a part of nearly two week long march into Seoul. The march started on March 7 in Pusan, the second largest city in the south eastern corner of south Korea. The workers were divided into two groups, each about 40 workers, to begin a march along two different routes towards Seoul.
The KCTU appeals to all our friends in different countries to take action to coincide with the arrival of the Sammi workers in Seoul on March 18. You can send fax messages to
Please send the protest fax messages on March 17 and 18 so that we can announce the international action at the Sammi workers rally in Seoul on March 18. This will make it an international march on Seoul for justice and jobs for Sammi workers. If possible, you can also organise a “visit” to the Korean embassy in your country to deliver your protest letter. (Let us know of your action so that we can include your action in our public announcement.)
The “Sammi Workers March on Seoul” is a part of the campaign to win back their jobs.
The plight and struggle of Sammi workers started in mid-December 1996 when the Pohang Steel Corporation (Posco), world’s largest steel mill, took over the Sammi Specialty Steel Industry. The Posco claims that it took over the company in the so-called P&A (purchase and acquisition) mode. It set up a new subsidiary called Changwon Specialty Steel based on its take over. In doing so, it dismissed 580 workers out of the originaly 2,342 workers who were employed by the Sammi Specialty Steel. Posco justified that it had no legal obligation to guarantee jobs to those workers who were employed by the Sammi because of the mode of the transaction.
The Posco’s claim was challenged by the union and most of labour law specialists. The union at Sammi -- backed by labour law and commercial law specialists -- asserted that Posco in fact had and has the legal obligation to guarantee jobs for those workers it had fired. They asserted that the form of transaction was in fact one which by law required the Posco to respect the existing employment contracts.
The Central Labour Relations Commission – a labour relations arbitration and unfair labour practices remedy body, similar to labour court – ruled, on December 17, 1997, in favour of the union and dismissed workers and ordered the Posco to reinstate the fired workers.
The steel giant appealed to the Appellate Court. But, on January 22, 1999, the second highest court handed down a ruling in favour of the union and workers. It found the actual transaction which took place between the Posco and Sammi Specialty Steel was in fact one that gave the Posco a legal obligation to respect the existing employment contracts. The Posco was ordered to reinstate the dismissed workers.
In addition to the legal successes, the Sammi workers also won significant social and political victories. In April and June 1998, the KCTU – following a series of nation-wide strikes – won agreements with the government and specific commitment of President Kim Dae Jung to have the dismissed workers reinstated.
However, the Posco appealed the ruling of the Appellate Court to the Supreme Court, the highest court of the land. Now the case is pending at the Supreme Court and it is expected to begin formal examination soon.
The KCTU decided in late 1999 to organise a broad-based campaign to highlight the case and step up the struggle to win reinstatement of the Sammi workers.
The importance of the Sammi case for the workers in Korea -- apart from the self-evident demand of the affected workers -- stems the wide spread practice of business take-overs.
In the context of government promotion of hostile take-overs, de-regulation of laws concerning merger and acquisition, and the massive entry of foreign capital to win control of local firms, workers are faced with an ever worsening job insecurity. If the Sammi workers were to lose their struggle -- that is, if the Supreme Court (overturning the decisions of the lower courts and existing case law created by precedence) rules in favour of the Posco -- workers will be deprived of all legal protection for their jobs. Companies will be able to freely devise various disguises -- just like the Posco -- to present their transaction as one which does not commit them to legal obligation to respect existing employment contracts.
In response, the KCTU, together with the Korean Metal Workers Federation, and the Sammi Specialty Steel Workers Union, has organised a variety of campaigns to highlight the issue. The KCTU has printed 5,000 postcards demanding the Posco to reinstate the dismissed workers. Some 4,000 postcards were distributed to various unions all over the world. Unionists in different countries -- Sweden, Australia, the Netherlands, South Africa, Brazil, the U.S., Canada, Japan and many other Asian countries have sent the postcards to President Kim Dae Jung and the Posco to demand the reinstatement of the Sammi workers.
Cardinal Stephano Kim Su-hwan, in a meeting with the KCTU president Dan Byung-ho on March 13 -- organised to explain the plan of the KCTU’s Campaign 2000 -- committed himself to make a special petition to the government and Posco to reinstate the dismissed Sammi workers.
KCTU member unions and unionists have organised a campaign to put “classified” ads in newspapers demanding the reinstatement of Sammi workers. A special seminar was organised by the academic association of labour law practitioners and professors on March 11 to clarify the obligation of the companies to respect the employment contracts in taking over another company.
A number of renowned leaders of the society, like Cardinal Kim, are expected to make special appeal and petition to the government and the Supreme Court to uphold the right of workers to jobs in the cases of company take-overs.
The Struggle of Sammi Workers is making itself into trade union movement history books. As of December 31, Sammi workers have been “on struggle” for 1,101 days. When they arrive in Seoul on March 18, they would have been struggling for 1,179 days. Currently over 180 of the dismissed workers are continuing in their struggle to force the world’s largest steel maker to respect the basic labour rights.
* * * Sample Letter * * *
President Kim Dae Jung
Dear President,
I write to APPEAL to you to turn your attention to the plight and demand of the Sammi workers. You have already made specific commitment to the Korean Confederation of Trade Unions twice, on April 22 and June 23, 1998, to reinstate the workers of Sammi Specialty Steel.
The total lack of respect for the rights and welfare of workers and aggressiveness demonstrated by the Posco adds to the frustration and anger of Korean workers in times of crisis. Such a hostile corporate behaviour not only threatens the security of jobs and lives of workers, but also the legitimacy of all restructuring efforts, thus fuelling industrial unrest.
Some 180 Sammi workers have been struggling for over 1,100 days to win back their jobs. Posco – the largest steel mill in the world -- may feel that the cost of dragging the case, despite all the court ruling against itself so far, is no burden what so ever given its huge size and profits.
But as the president of the country, you must be aware of the suffering of those workers who have been deprived of their jobs. Their families are destroyed. Their health is destroyed. If this is allowed to continue, and if the Posco is allowed to get its own way through its arrogance, then the health of the society will be endangered. The image of Korea will also be irrevocable tarnished as a country that does not care for workers and has no respect for rights of workers.
You have repeatedly asserted that you will make Korea a paradise for business. But, if the Posco allowed to have its way, then, the paradise you make for business will be nothing more than a hell for the Korean workers.
I urge you as a head of the government and a majority shareholder of the state enterprise Posco to intercede on behalf of the Sammi Workers.
Sincerely yours
