Employees of Chanel Korea hold a press conference in Seoul on Dec. 7, 2021, threatening to go on a strike indefinitely over the company’s alleged violation of labor regulations. (Yonhap)
SEOUL, Sept. 5 (Korea Bizwire) — Chanel Korea’s sales employees, working at domestic department stores and duty-free shops, have launched an all-out strike.
Members of the Korean unit of the French luxury fashion house’s labor union, representing sales workers at department stores and duty-free shops, went on strike from Friday to Monday due to management’s deceptive negotiation attitude and the reversal of the company’s basic pay system, according to the Korean Confederation of Trade Unions.
The labor union asserted that management disrupted the basic wage system by establishing a higher basic pay for new sales staff compared to employees with 10 years of experience.
Additionally, it pointed out that Chanel Korea transferred 295 billion won (US$223 million) out of last year’s 300 billion won in profits to Chanel headquarters in Luxembourg, demanding a fair profit distribution.
Against this backdrop, the labor union intends to continue with online activism following this month’s all-out strike.
Through online campaigns, the labor union aims to actively publicize the reason behind its strike and will hold an all-out strike resolution meeting from Sept. 8 to 10.
In the meantime, Chanel chalked up sales of 1.59 trillion won in the South Korean market last year, up 30 percent year on year, with its operating profits estimated at 412.9 billion won, a 66 percent increase year on year.
During the same period, its net profit jumped by 74 percent to 311.5 billion won.
Chanel Korea transferred the majority of its net profit, 295 billion won, to the Luxembourg entity Chanel S.a.r.l in the form of a dividend. This represented an increase of 327.5 percent compared to 69 billion won a year ago.
Ashley Song (ashley@koreabizwire.com)
