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| Pernod Ricard Korea CEO Jean Touboul |
Pernod Ricard Korea (PRK) is facing worsening labor-management relations, amid the slump in the nation's Scotch whisky market.
Since the PRK union alleged earlier this month that a company executive verbally abused and sexually harassed his subordinates, the management has apparently shown no signs of attempting to resolve the dispute.
According to industry officials, Wednesday, PRK CEO Jean Touboul, who has been criticized for his attitude toward the union, has been embroiled in another controversy for his friendly relations with the allegedly abusive executive.
During a recent internal "town hall" meeting with PRK employees, Touboul declined to dismiss him, saying, "Cursing itself is not illegal, and it is not a basis to dismiss any employee."
PRK agreed that its CEO made the remarks at the meeting.
The union criticized the CEO for not distinguishing the executive's mistreatment from jokes.
According to the union, the management also showed employees a screen capture of a news report about the concerned executive, urging them to tell the truth. The union said the company told its employees that they may have to testify about the case with the company's legal adviser, the law firm Kim & Chang.
The company said it has been trying to determine the truth of the allegations.
A spokesman from its PR agency, Edelman Korea, however, said Touboul's remarks were not intended to support the executive.
"Cursing is obviously not polite. The case of cursing reported by the union has been addressed and cleared in an internal town hall meeting. The concerned executive apologized about it. It appears clear that there was no intention to abuse any employee," the spokesman said.
"The CEO wants that the intention of the comment is not twisted and distorted. He said union chairman Kim Guee-hyun should not abuse personal pain by using it for his own purposes by distorting the truth. In particular, PRK refutes firmly that this attempt was due to pressure by management."
PRK said it will not comment further, citing it must protect the confidentiality it owes to its employees, in particular those going through personal problems.
Industry officials point out the company's worsening profitability underlies the lingering dispute.
Since last year, the company has lagged behind domestic Scotch whisky distributor Golden Blue in sales.
After PRK's status in the domestic Scotch whisky market nosedived over the past few years, the company carried out large-scale restructuring in 2016, urging six executives and 40 managers to voluntarily leave the company.
Its wage bargaining for this year also did not end well.
The union is considering going on strike again, following a 38-day walkout in 2015.
