The Automotive Committee of the European Metalworkers’ Federation (EMF), together with its French affiliated organisations firmly condemn the conduct of Valeo in its South Korean operations.
Completely brushing aside all rules of corporate social responsibility and ignoring the most basic of workers’ rights, Valeo closed, without prior warning, its production site in Cheon-An, which is part of the Valeo compressor Korea division. The workers were shut out and left without any severance package and indeed any semblance of assistance. They received formal notification of the closure only after the facts had taken place.
Valeo, a France-based major supplier company for the automotive industry, supplies several companies from South Korea: Renault-Samsung Motors, Ssangyong Motors, Hyundai Heavy Industries, as well as GM, Nissan and Mazda.
Valeo’s exploitation of the shortcomings in South Korean labour law is quite simply unacceptable. South Korea has a long record of ILO rights violations, the metalworkers’ trade unions have thus filed numerous complaints to the ILO governing body about this country.
With its headquarters in Europe, Valeo management is well aware of the laws and rules governing company closure, particularly when it comes to workers’ participation and their information and consultation rights.
Back in France, any attempt to close a production site without following the rules would be unthinkable; a severance package for the workers would be offered and no employee would be left without assistance finding another job - extensive programmes for retraining and relocation, if necessary, would be arranged.
The EMF’s Automotive Committee, together with its French affiliated organisations, express solidarity with the South Korean Valeo workers who are paying the price for Valeo’s unilateral decision. They firmly condemn Valeo’s conduct in South Korea.
Valeo’s general management must now urgently open negotiations with the representatives of the South Korean Valeo workers to establish the measures to assist the affected workforce there. The European trade unions will support their South Korean colleagues during their struggle and the European Works Council of Valeo will carefully monitor the process.
For the EMF and its affiliated organisations, there is clearly a need to define fundamental principles for dealing with company restructuring in international operations. Valeo’s blatant misuse of shortcomings in labour law in foreign countries, which would never occur in its European operations, should not be allowed.
Valeo needs to realise that work is not a commodity and that its code on Corporate Social Responsibility1 sets obligations for the company. The social legislation must be respected by this company.
Public authorities in Europe need to take heed of the situation regarding workers’ fundamental rights in South Korea when negotiating with the South Korean government.
This resolution will be translated into the languages of the EMF affiliates and transmitted to the workers of Valeo in Europe.
Sevilla, 12th May 2010