The labor-management conflict at the domestic whiskey company Golden Blue is escalating. Recently, management implemented a workplace closure at major sales points in the metropolitan area, claiming that normal operations are impossible due to the union's long-term strike. They stated to halt wage payments and return all corporate vehicles and credit cards. On the other hand, the union strongly opposes management's workplace closure, calling it a clear illegal and unfair act.
According to industry sources on the 20th, the labor-management conflict at Golden Blue began after the failure of wage and collective bargaining negotiations for 2023. The union demanded that the wage increase rate align with the industry average and requested a system to ensure that performance bonuses are paid based on clear criteria rather than at the discretion of management.
A union official told ChosunBiz, "Performance bonuses account for 30% of the withholding tax amount, but are decided at the discretion of management. This structure has become the seed of discontent," and added, "While the company acknowledged the need for wage increases, it maintained that it could not raise them to industry levels all at once, but tensions began when management suddenly changed its position during negotiations."
Golden Blue and the union agreed on a wage increase rate of 8.7% in 2021 and 8.5% in 2022. However, in 2023, management changed its position and insisted on a 3.5% increase, leading to a breakdown in negotiations. According to the union, the annual salary of Golden Blue employees is at 60-70% of competitors. Management is also reported to have rejected the introduction of a performance bonus system.
Golden Blue is a representative local whiskey brand produced in South Korea. Once holding only a 0.1% market share, it has risen to 50% since 2017. It is the pride of domestic whiskey. After the breakdown of negotiations, the union has been conducting partial strikes since securing the right to strike in February of last year. In the negotiations that lasted until the 7th, the positions of labor and management remained parallel, and ultimately, management announced a workplace closure at four sales points in the metropolitan area. Twenty-five union members at those points have been excluded from work, and wage payments have also been halted.
Management stated, "Normal operations are difficult due to the union's long-term strike, first-quarter sales have decreased by 52% compared to the same period last year, and we recorded a net loss for the first time in 12 years." Golden Blue recorded sales of 209.4 billion won and an operating profit of 33.8 billion won last year, representing declines of 6.6% and 32.1%, respectively, from the previous year. In the first quarter, sales plummeted to 15.4 billion won, a 52.6% decrease compared to the same period last year. Operating losses totaled 5.4 billion won.
The union argues that claiming a drop in sales due to partial strikes is unreasonable, as there are more sales and administrative staff than production staff in the company. A union official stated, "The recent decline in sales is due to management's failure in sales strategy and changes in market conditions," adding, "Attributing management failures, such as changes in product composition and hasty new product launches, to the labor union is an evasion of responsibility."
Another factor that has exacerbated the union's dissatisfaction is the high salaries and dividends of the owner's family. Chairman Park Yong-soo and other owners raised shareholder dividends by 30% compared to the previous year to a total of 6.5 billion won in 2024. Since Chairman Park's family owns 81.7% of Golden Blue's total equity, 5.3 billion won of that amount goes to the owner's family. Ordinary shareholders would receive dividends totaling about 1 billion won.
Chairman Park received a salary of 1.88 billion won last year. In the past, he had received a salary of up to 3.5 billion won, leading to speculation in the industry that last year's increase in dividends was a way to compensate for the owner's family's income.
Regarding the workplace closure, the Supreme Court ruling holds that it is permitted only when there is considerable justification as a counter or defensive measure against labor disputes, after considering specific circumstances like the progress of labor-management negotiations, the nature of the disputes, and the degree of impact on the employer. There must be substantial interference in the employer's business due to the disputes, and excessive workplace closures beyond necessity are considered illegal.
A union official stated, "The management that promised to create a company without retirement suddenly implemented restructuring, and the owner has never personally engaged in negotiations," and added, "Management's workplace closure is a clear act of unfair labor practice, and we are preparing to file an injunction and undertake legal action."