Osstem Implant workers fear restructuring as first union forms

Employees at Osstem Implant, South Korea's leading dental materials company, are voicing concerns over potential restructuring orchestrated by its owner, MBK Partners. The unease stems from a series of unusual personnel assignments where employees are reportedly being moved to different departments and encouraged to resign.

In the last six months, approximately 200 employees, including 40 recently assigned to a "Competitiveness Enhancement TF" (task force), have left the company. These employees were reportedly asked to switch to roles unrelated to their previous work. One pregnant employee, assigned to the TF, was offered a transition to sales or manufacturing roles, which she declined due to the physical demands and lack of adequate training information.

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The shadow of employment instability is cast under the name of 'efficiency'.

These developments have led to the establishment of Osstem Implant's first labor union on July 3rd. The union's founding statement expresses anxiety over "the shadow of employment instability under the guise of 'efficiency'" and aims to prioritize "securing employment stability, including preventing restructuring."

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Formal training and waiting periods appear to be a tactic to identify low performers and induce voluntary resignations.

Osstem Implant was acquired by a consortium led by MBK Partners and UCK Partners in 2023. Since the acquisition, the company's operating profit has significantly declined, and its operating profit margin has fallen from over 20% to around 6%. Workers are drawing parallels to MBK's acquisition of Homeplus in 2015, which was followed by extensive restructuring and layoffs after the company failed to achieve profitability targets.

An labor attorney noted that the "formal training and waiting periods appear to be a tactic to identify low performers" and "induce voluntary resignations." Osstem Implant, however, stated that these measures are intended for "business readjustment and job efficiency" and that they are communicating with employees to provide opportunities, denying any illegal actions.

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These are measures for business readjustment and job efficiency. We are communicating with employees to provide opportunities. There were no illegal parts.