S. Korea reaffirms privatizations despite strikes

[Sabri Oncu <soncu@xxxxxxxxxxx>]

From: www.thedeal.com

Updated 01:30 PM EST, Mar-4-2002

S. Korea reaffirms privatizations despite strikes


by Gina Chon
Posted 11:48 AM EST, Mar-4-2002

SEOUL ? Despite days of labor protests, the South Korean
government said March 4 it must move forward with restructuring
plans for the public sector, which includes privatizing certain
banks, Korea Gas Corp. and Korean National Railway Corp.

The government's statement came as 47 workers of state-run Korea
Electric Power Corp. received notice Monday that they have been
fired, as their strike against the government's privatization
plans for utilities entered its eighth day.

Kepco also plans to file a compensation claim against the
electricity union for losses caused by the strike, which began
Feb. 25. Negotiations over the weekend among Kepco officials, the
government and union members failed to produce an agreement.

Some new staff members have been hired to replace the several
thousand striking workers, who are protesting because they fear
job losses due to the government's privatization plans. In South
Korea, it is illegal for public sector workers to strike.

The government said it will use every possible measure to resolve
the dispute and added, "the demand by the power industry labor
union [to cancel privatization plans] must be withdrawn as it has
no justification," according to a statement by Prime Minister Han
Dong Lee's office.

Workers of Kogas and the railway service originally joined the
strike, and tens of thousands of employees at South Korea's top
two automakers, Hyundai Motor Co. and its affiliate Kia Motors
Corp. engaged in a "sympathy strike" that lasted four hours Feb.
26.

But workers of Kogas and the railway quickly managed to come to
an agreement with management and returned to work Feb. 25 and
Feb. 27, respectively. Management agreed to inform the Kogas
union and the railway union of privatization plans and to include
their input in the efforts. However, restructuring of both groups
has made little progress and plans may not be implemented this
year, as hoped.

Kepco, however, has made progress in its privatization plans and
wants to sell the first of five power-generation units in the
second half of this year. Atlanta-based Mirant Corp., Belgium's
Tractebel Electricity and Gas International and Singapore Power
International have all expressed interest in the units, which
Kepco estimates to be worth $2.3 billion each.

Despite government threats of legal action and the dismissal of
employees, Kepco union spokesman Hyun Jin Kim said workers will
continue to protest until the government decides to include more
labor input into the restructuring process.

"We have to fight for our rights," Kim said.