Korean prosecutors who were investigating allegations of GM Korea employees receiving kickbacks in return for business favors are now widening the scope of their investigation to also cover bribes related to employment guarantees. (image: Yonhap)
SEOUL, June 23 (Korea Bizwire) – Korean prosecutors who were investigating allegations of GM Korea employees receiving kickbacks in return for business favors are now widening the scope of their investigation to also cover bribes related to employment guarantees.
Many have testified that an applicant is guaranteed a permanent position regardless of qualifications if executives of the company’s labor union or an agent within the company offer a hand. On top of inside connections, a cash payment of 80 million won is allegedly also part of the deal. The accusers have said that the company’s labor union and management have been involved in the bad practice of “selling” permanent positions for more than ten years.
Based on whistleblower testimony, there are two ways of becoming a permanent employee. Yet most of the cases involve a connection with people in higher positions through labor union executives or delegates.
That is the reason behind a rumor that most of the employees at a production line are family members and friends of former labor union executives.
It is no surprise that a current permanent employee of the company plays the role of an “agent”.
A non-permanent employee of a subcontractor who does not have a connection with the labor union can become a permanent employee if a connection can be established to superiors through these “agents”.
“A recent high-school graduate was hired as a permanent employee through a subcontractor. Everyone would have been suspicious even if he had not mentioned anything, but he publicly announced that he had some sort of connection,” said a permanent employee of GM Korea.
“These employees who are hired in this manner typically do not have good conduct. Many subcontractor employees who have been working diligently for nearly ten years are discouraged when they hear the news,” he added.
This is why employees of first-tier contractors do not even apply for positions when recruitment ads are posted. They are well aware that ‘no connections’ means no permanent position.
GM Korea pegged a former executive as the main offender.
He had been managing a first-tier contract company at which he had been the front man, and he accepted bribes for turning non-permanent employees into permanent ones.
Since the prosecutors’ search and seizure on June 1, GM Korea is currently conducting an internal audit regarding the issue.
After being informed of the illegal custom, prosecutors have launched in-depth investigations into the first-tier contractor’s employment switching practices. The bank accounts of the company’s labor union executives are being tracked. An unusual flow of a large amount of cash has been spotted.
Despite all the evidence and testimony, prosecutors are maintaining a cautious approach.
By Nonnie Kim (nkim@koreabizwire.com)
