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Pernod Ricard Korea moving to axe jobs

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Models promote Pernod Ricard Korea's Imperial whiskies during an event in southern Seoul, in this Dec. 20, 2016, file photo. / Korea Times photo by Koh Young-kwon
Models promote Pernod Ricard Korea's Imperial whiskies during an event in southern Seoul, in this Dec. 20, 2016, file photo. / Korea Times photo by Koh Young-kwon

Union vows to fight French whisky maker's downsizing in Korea

By Nam Hyun-woo

Pernod Ricard Korea CEO Jean Touboul
Pernod Ricard Korea CEO Jean Touboul
Pernod Ricard Korea (PRK) is moving to cut more than half of its 220-member workforce, drawing strong protest from employees who vow to fight it to the last, according to the company union Wednesday.

Union workers also oppose the firm's latest decision to sell off distribution rights of its local whisky brand, Imperial, arguing the management is using the sale as an excuse to reduce its payroll.

The union stressed the company is attempting to lay off workers while sending a huge amount of dividends to its French headquarters, denouncing the practice as a "getaway."

It said the company's decision to sell off the Imperial whisky brand and carry out restructuring are "unacceptable," adding workers will hold a meeting to discuss what measures it will take to stop the company.

"PRK has sent more than 30 billion won of dividends to its headquarters in the past two years," a union member said. "Given that, PRK's move to sell out its brand is a typical getaway attempt, collecting profit on the sacrifice of workers."

According to PRK's regulatory filing, it has been sending significant amounts every year to its headquarters Allied Domecq. From July 2015 to June 2016, it sent 25.2 billion won in dividends, 9.1 billion won the following year, and 11.5 billion won last year. The combined amount during the period stands at 45.85 billion won.

The company's payout continued last year, even though its operating profit declined to 4.89 billion won from 15.48 billion won a year earlier.

PRK refused to comment over union's claim and criticism over its "excessive" payout.

The union's move came after PRK announced Tuesday it would assign the distribution of Imperial brand to Drinks International, a company led by William Grant & Sons Korea CEO Kim Il-joo. Kim is known for his experience in the domestic whisky market, making a number of brands that managed to top the market.

PRK said it will also solicit voluntary resignations for "necessary changes" in its organization and structure, with PRK CEO Jean Touboul saying the company will face losses in 18 months unless it scales down its workforce.

With the plan, the company said it will cut the number of regular jobs at the company to 94 from 221.

"With a more efficient organization and a renewed focus, Pernod Ricard Korea will transform into a fully consumer-centric company regaining a competitive advantage in the market," Touboul said in a statement. "We will respect and support as best as we can the employees who will be inevitably impacted by the reorganization."

Meanwhile, Touboul will face a prosecutor investigation for alleged unfair labor practices and an executive's alleged sexual harassment, the labor ministry said Tuesday.

He was criticized last June for denying the allegations in a meeting with employees, and once again in October for the same reaction during a National Assembly hearing. The latter triggered the ministry's investigation into the company.



Nam Hyun-woo namhw@koreatimes.co.kr


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