New Hankook Plant Under Fire from Unions, Locals

Within a month of opening the Hankook factory in the Hungarian town of Dunaújváros has become the subject of labour law breach allegations. These complaints from union representatives, including accusations that plant management has not adhered to conventions established by the International Labour Organisation and the EU, have resulted in employment inspectors visiting the facility.

Amongst the union’s list of grievances are accusations of illegal dismissal of workers, late payments, no extra pay for overtime, company discouragement of union activity and unsanitary working conditions. Following investigation by Hungary’s Employment and Work Safety Authority a report on the matter is due to be released and the end of July.

Hungarian government plans to provide Hankook with 92.6 million euros worth of subsidies in order to eventually increase the number of employees at Dunaújváros to 1,500 have been approved by the European Commission. However, senior union representative Tamás Székely has said he intends to meet with Hungarian Prime Minister Ferenc Gyurcsány and insist the government withhold these subsidies until the union is satisfied all labour issues have been resolved.

Tamás Fridrich, head of Hankook’s factory council, reported in a statement that factory management has held meetings to discuss the complaints against Hankook.

A separate complication for the operations at Dunaújváros has come in the form of an appeal lodged by a body called the Clean Air Action Group. The group claims it cannot verify whether the factory met all relevant environmental regulations, and therefore its operational permits should be reviewed. In its defence Hankook stated the facility has met both Hungarian and EU regulations.

A third prong of opposition has arisen locally, with villagers from neighbouring Kulcs collecting signatures in order to call for a referendum to block Hankook’s plans to build a residential development housing 400 of its employees. The tyremaker wants to purchase 21 hectares of land in the village and build flats and houses, as well as a new village community centre.