Sejong Hotel's Self-Inflicted Wounds: Foundation Accused of Union Busting Through Asset Degradation
Translated from Korean, summarized and contextualized by DistantNews.
TLDR
- The Sejong Hotel's workforce has been drastically reduced through layoffs and voluntary resignations, leaving only about 20 regular employees to manage its 333 rooms.
- The hotel's owner, the Sejong University Foundation, is accused of deliberately weakening the hotel's assets and operations to facilitate the removal of its labor union.
- Despite legal battles and protests, including a high-profile protest by a union leader, the foundation's leadership, connected to influential political and judicial figures, has shown disregard for oversight.
The once-prestigious Sejong Hotel, a landmark in Seoul's Myeongdong district, is facing a grim reality, largely orchestrated by its parent organization, the Sejong University Foundation. The article paints a stark picture of deliberate asset stripping and workforce decimation, seemingly aimed at dismantling the hotel's labor union. The narrative highlights how, after a period of management improvements under state-appointed directors, the return of the founder's eldest son, Ju Myung-geon, marked a turning point towards what is described as a systematic dismantling of the hotel's operational integrity.
We have to be in the same boat. Are you not going to work at the company anymore?
The core of the conflict lies in the alleged creation of multiple labor unions, manipulated to weaken the position of existing union members. Faced with pressure, threats, and unfavorable working conditions, many unionized employees were pushed out or coerced into joining company-controlled unions. The subsequent 38-day strike, which achieved some success in converting non-regular workers to regular status, was followed by a harsh crackdown. Employees faced forced reassignments, significant pay cuts, and performance-based pay systems that led to the exodus of middle management.
The foundation is intentionally destroying its revenue-generating assets like this to drive out the labor union. They've brought in their contracted companies and created a hotel with non-regular workers, downgrading it to a three-star hotel.
The situation has worsened with the onset of the COVID-19 pandemic, which provided a pretext for widespread layoffs and voluntary resignations. The article contends that the foundation is intentionally degrading the hotel's value, transforming it into a three-star establishment run primarily by non-regular workers, thereby achieving its goal of eliminating the original union. The legal system's acknowledgment of the hotel's financial crisis, citing the pandemic, is presented as a flawed justification for these dismissals, particularly when the crisis is attributed to management decisions. The article concludes by criticizing the foundation's leadership, which allegedly evades parliamentary scrutiny, and expresses a determination to continue the fight for reinstatement, suggesting that the struggle for labor rights against powerful, politically connected foundations is far from over.
The judiciary acknowledged the management crisis due to the global pandemic, but the workers are wronged. They were laid off due to the company's management difficulties, not their own faults, despite working diligently for 20 to 30 years.
Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.