A group of unionised workers of Tongyang Life and ABL Life called on Woori Financial Group to guarantee continued employment and independent management of their employers, Wednesday (July 24), in what they said was the only recourse to avoid Woori’s “vulturistic” takeover.
Also among the demands was a meeting between union leaders and Woori Financial throughout the due diligence of the two life insurers owned by China’s Dajia Life Insurance Group. Dajia holds over 42% of Tongyang Life shares and a 100% stake in ABL Life.
Tongyang and ABL have total combined assets of 49.9 trillion won ($36 billion) as of the end of March. Together they stand as the sixth-largest market player by asset size after Samsung, Kyobo, Hanwha, Shinhan and NH NongHyup. The acquisition will take shape, as indicated by a memorandum of understanding signed between Woori and Dajia last week. It will fortify Woori’s insurance business, a decade after it sold off Woori Aviva Life in 2014.
The development followed Woori Financial opting out of an acquisition deal for Lotte Insurance, on June 28, a move market watchers said was to prime the Tongyang and ABL acquisitions.
“Woori Financial should guarantee Tongyang and ABL workers continued employment after the acquisition,” the group said during a rally in front of the Seoul Government Complex in Gwanghwamun.
“Also to be observed are previous agreements between management and unionised workers. We expect the independent management of the two firms to be evidenced by no corporate restructuring, affiliate spinoffs or hiring of subcontractors to outsource our jobs.”
They criticised the Financial Services Commission (FSC) over what they characterised as a “failed oversight of the problematic acquisition.”
“The FSC rushed to approve the acquisition with no consideration for the job security, basic rights to labour or the healthy growth of the two firms,” they said.
“Any further confusion or violation of labour rights will lead to a full-fledged, extended collective walkout.”
Unionised Tongyang Life and ABL Life workers hold a rally in front of the Seoul Government Complex in Gwanghwamun, on Wednesday. Courtesy of Korean Finance & Service Workers’ Union. – Korea Times
