#86, November 5, 2002
S. KOREAN GARMENT MAKING BUSINESS IN PRIMORYE: DEVELOP OR WRAP UP?
A meeting devoted to situation in South Korean-invested ventures was held at Primorsky Krai administration and chaired by first vice governor Aleksandr Kostenko.
It seems that a conflict may arise there, and all concerned parties - the majority of 28 factory directors, labour union leaders, labour inspectors and officials of the regional administration's Industry Committee - have met for the first time ever to discuss this situation.
The meeting was opened by vice governor Aleksandr Kostenko, who clearly defined the problem. By his words, Primorye administration receives many complaints from South Korean garment making factories about labour rules violations, in particular, duration of working day, "elements of labour slavery", low wages, an so on. These complaints come from labour inspectors, labour unions, workers.
As a matter of fact, "ZR" journalist noted a difference in the figures quoted by the parties. Officials and union leaders believe that there are 23 garment making factories in Primorye employing 9,000 workers, and garment manufacturers' association "Primorye" says there are 28 factories with a total staff number of 15,000.
South Korean managers say that the "negative image" of garment making factories has been largely provoked by media, publishing, by words of Mr. Kim, deputy director of KOTRA representation in Vladivostok, "horrible" but not proven facts of abuse and other insults toward Russian workers. That's why the current dilemma looks like this: will Primorye maintain 15,000 job places but with more appropriate wages or lose these jobs? It seems that neither of the debating parties is willing the second scenario to come true.
South Korean businesses manufacture their produce for the United States and other countries. They work on client's raw materials under customs control procedures and by this reason pay no value-added tax and have some other privileges. Seamstresses have an average monthly wage of 2,500-3,500 rubles. Tax deductions from these factories are minimum and they pay taxes in due time. The main effect of this business for Primorye is job places.
Labour inspectors report that a number of factories break labour rules: make staff work overtime without written consent, employ of workers of minor age without medical examination. Many factories do not have collective labour agreements that should necessarily include a clause on wage indexation. Some factories are housed on unsuitable premises. Olga Barkova, chairperson of RosProfTextileLegProm (national union of textile and light industry workers), declared that the moral and psychological climate at garment making factories is low and that low wages discourage people for employment there. She also complained that South Korean managers oppose to labour union activities.
Local authorities are worried, above all, about the fact that the Koreans started recruiting foreign work force - Chinese nationals. Primorye administration has expressed strong objection to this practice.
South Korean businessmen claim that the quality of work force is low and that they are short of workers. Thus, one of factories has equipment for 1,100 workers but employs only one-third of the required number. Apart from Chinese seamstresses, there are female workers from Asia. There is experience in recruiting jobless persons from Chita Oblast. Korean managers also complained that on the day after pay day up to 100 workers, being "sick", are absent. Many resign before summer and, after receiving unemployment relief for several months, come back to factory.
In general, the meeting at the regional administration has covered the entire range of mutual claims and been very useful. The parties agreed to set up a tripartite working group from governmental officials, South Korean employers and labour unions. This group will seek for a compromise in reaching a territorial tariff agreement that should stipulate adequate working conditions and appropriate wages. Results of this work will be discussed in December. Possibly, the agreement may be signed in that month, if the parties hear each other. - Irina DROBYSHEVA.