Hankook Tire Co. Ltd. of South Korea received sizeable development and training subsidies in 2006 from the Hungarian government when it built an auto and light truck tyre plant in Dunaujváros, south of Budapest. A year later and several months following the start of production, the pay-back has been broken labour laws and blatant discrimination of trade unionists.

The world’s seventh largest tyre producer, 10% owned by Michelin, has paid fines for labour code violations, has seen large portions of its subsidies suspended by the Hungarian government, and has sacked one leader of the VDSZ Tire Manufacturing Workers’ Union, while refusing to negotiate with the ICEM affiliate, the Federation of Chemical, Energy, and General Workers’ Unions (VDSZ).

Since production start-up early this year, the company has circumvented EU labour standards, and has violated ILO Conventions at its 28,500-unit-per-day tyre factory, now employing 800 blue-collar workers. Hankook Tire Magyarorszag Kft. has been found guilty or charged with non-payment of overtime pay, unsanitary work conditions, forcing a six-day work-week before a two-day leave, making work mandatory on public holidays, interrogating workers on their lawful right to join a union, and illegal dismissing workers.

Besides using Hungarian subsidies to get the plant up and running this year, Hankook has used aid totalling nearly €100 million from the European Commission. The company has reciprocated by paying fines for illegally employing 32 Korean workers and missing deadlines on registering employees to social security programmes.

Hankook’s anti-social behaviour in Dunaujváros was a major talking point in mid-September discussions between South Korean Prime Minister Han Duk Soo and Hungarian Prime Minister Ferenc Gyurcsány.

VDSZ is adamant that Hankook respect EU, ILO, and Hungarian standards and regulations. The ICEM supports VDSZ in its struggle with Hankook. In a further letter to Hankook’s managing director on 23 November, VDSZ President György Paszternák stressed that a Hungarian court has certified the union’s Tire Manufacturing Workers’ Union as bargaining representative, and that the company must negotiate terms and conditions with the union, as well as deal with the VDSZ branch on matters related to EU Works Council elections.

At its 4th World Congress in Bangkok, from 22 to 24 November, the ICEM adopted unanimously adopted a solidarity statement in response to the ongoing violation of workers’ rights by Hankook Tire Hungary Ltd. The statement was conveyed by the ICEM in a letter to the company.