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Special KCTU Appeal

On March 14, some 40 Sammi workers marched into the streets of Daejon, one of
the largest cities in Korea, geographically at the centre of south Korea. On the same,
another group of 40 workers marched into Chongju.

In these two cities, they were met, welcomed, and joined by unionists to hold joint
demonstrations.

The march is a part of nearly two week long march into Seoul. The march started on
March 7 in Pusan, the second largest city in the south eastern corner of south Korea.
The workers were divided into two groups, each about 40 workers, to begin a march
along two different routes towards Seoul.

The KCTU appeals to all our friends in different countries to take action to coincide
with the arrival of the Sammi workers in Seoul on March 18. You can send fax
messages to

President Kim Dae Jung: +82-2-770-0210
Prime Minister Park Tae Jun: +82-2-722-6464
President of Posco: +82-2-3457-1900
Minister for Labour: +82-2-504-6708


Please send the protest fax messages on March 17 and 18 so that we can announce
the international action at the Sammi workers rally in Seoul on March 18. This will
make it an international march on Seoul for justice and jobs for Sammi workers. If
possible, you can also organise a "visit" to the Korean embassy in your country to
deliver your protest letter. (Let us know of your action so that we can include your
action in our public announcement.)


The "Sammi Workers March on Seoul" is a part of the campaign to win back their
jobs.

The plight and struggle of Sammi workers started in mid-December 1996 when the
Pohang Steel Corporation (Posco), world's largest steel mill, took over the Sammi
Specialty Steel Industry. The Posco claims that it took over the company in the so-
called P&A (purchase and acquisition) mode. It set up a new subsidiary called
Changwon Specialty Steel based on its take over. In doing so, it dismissed 580
workers out of the originaly 2,342 workers who were employed by the Sammi
Specialty Steel. Posco justified that it had no legal obligation to guarantee jobs to
those workers who were employed by the Sammi because of the mode of the
transaction.

The Posco's claim was challenged by the union and most of labour law specialists.
The union at Sammi ? backed by labour law and commercial law specialists --
asserted that Posco in fact had and has the legal obligation to guarantee jobs for
those workers it had fired. They asserted that the form of transaction was in fact one
which by law required the Posco to respect the existing employment contracts.

The Central Labour Relations Commission ? a labour relations arbitration and unfair
labour practices remedy body, similar to labour court ? ruled, on December 17, 1997,
in favour of the union and dismissed workers and ordered the Posco to reinstate the
fired workers.

The steel giant appealed to the Appellate Court. But, on January 22, 1999, the
second highest court handed down a ruling in favour of the union and workers. It
found the actual transaction which took place between the Posco and Sammi
Specialty Steel was in fact one that gave the Posco a legal obligation to respect the
existing employment contracts. The Posco was ordered to reinstate the dismissed
workers.

In addition to the legal successes, the Sammi workers also won significant social and
political victories. In April and June 1998, the KCTU ? following a series of nation-
wide strikes ? won agreements with the government and specific commitment of
President Kim Dae Jung to have the dismissed workers reinstated.

However, the Posco appealed the ruling of the Appellate Court to the Supreme Court,
the highest court of the land. Now the case is pending at the Supreme Court and it is
expected to begin formal examination soon.

The KCTU decided in late 1999 to organise a broad-based campaign to highlight the
case and step up the struggle to win reinstatement of the Sammi workers.

The importance of the Sammi case for the workers in Korea ? apart from the self-
evident demand of the affected workers -- stems the wide spread practice of business
take-overs.

In the context of government promotion of hostile take-overs, de-regulation of laws
concerning merger and acquisition, and the massive entry of foreign capital to win
control of local firms, workers are faced with an ever worsening job insecurity. If the
Sammi workers were to lose their struggle ? that is, if the Supreme Court
(overturning the decisions of the lower courts and existing case law created by
precedence) rules in favour of the Posco ? workers will be deprived of all legal
protection for their jobs. Companies will be able to freely devise various disguises ?
just like the Posco -- to present their transaction as one which does not commit them
to legal obligation to respect existing employment contracts.

In response, the KCTU, together with the Korean Metal Workers Federation, and the
Sammi Specialty Steel Workers Union, has organised a variety of campaigns to
highlight the issue. The KCTU has printed 5,000 postcards demanding the Posco to
reinstate the dismissed workers. Some 4,000 postcards were distributed to various
unions all over the world. Unionists in different countries ? Sweden, Australia, the
Netherlands, South Africa, Brazil, the U.S., Japan and many other Asian countries
have sent the postcards to President Kim Dae Jung and the Posco to demand the
reinstatement of the Sammi workers.

Cardinal Stephano Kim Su-hwan, in a meeting with the KCTU president Dan
Byung-ho on March 13 ? organised to explain the plan of the KCTU's Campaign
2000 ? committed himself to make a special petition to the government and Posco to
reinstate the dismissed Sammi workers.

KCTU member unions and unionists have organised a campaign to put "classified"
ads in newspapers demanding the reinstatement of Sammi workers. A special
seminar was organised by the academic association of labour law practitioners and
professors on March 11 to clarify the obligation of the companies to respect the
employment contracts in taking over another company.

A number of renowned leaders of the society, like Cardinal Kim, are expected to
make special appeal and petition to the government and the Supreme Court to
uphold the right of workers to jobs in the cases of company take-overs.

The Struggle of Sammi Workers is making itself into trade union movement history
books. As of December 31, Sammi workers have been "on struggle" for 1,101 days.
When they arrive in Seoul on March 18, they would have been struggling for 1,179
days. Currently over 180 of the dismissed workers are continuing in their struggle to
force the world's largest steel maker to respect the basic labour rights.

* * * Sample Letter * * *

President Kim Dae Jung

Dear President,

I write to APPEAL to you to turn your attention to the plight and demand of the
Sammi workers. You have already made specific commitment to the Korean
Confederation of Trade Unions twice, on April 22 and June 23, 1998, to reinstate the
workers of Sammi Specialty Steel.

The total lack of respect for the rights and welfare of workers and aggressiveness
demonstrated by the Posco adds to the frustration and anger of Korean workers in
times of crisis. Such a hostile corporate behaviour not only threatens the security of
jobs and lives of workers, but also the legitimacy of all restructuring efforts, thus
fuelling industrial unrest.

Some 180 Sammi workers have been struggling for over 1,100 days to win back
their jobs. Posco ? the largest steel mill in the world ? may feel that the cost of
dragging the case, despite all the court ruling against itself so far, is no burden what
so ever given its huge size and profits.

But as the president of the country, you must be aware of the suffering of those
workers who have been deprived of their jobs. Their families are destroyed. Their
health is destroyed. If this is allowed to continue, and if the Posco is allowed to get
its own way through its arrogance, then the health of the society will be endangered.
The image of Korea will also be irrevocable tarnished as a country that does not care
for workers and has no respect for rights of workers.

You have repeatedly asserted that you will make Korea a paradise for business. But,
if the Posco allowed to have its way, then, the paradise you make for business will
be nothing more than a hell for the Korean workers.