Unionized Tongyang, ABL Life workers demand continued employment

By Lee Kyung-min

Tongyang Life Insurance headquarters in Seoul / Courtesy of Tongyang Life Insurance

A group of unionized workers of Tongyang Life and ABL Life called on Woori Financial Group to guarantee continued employment and independent management of their employers, Wednesday, in what they said was the only recourse to avoid a “vulturistic” takeover by Woori.

Also among the demands was a meeting between union leaders and Woori Financial over the course of the due diligence of the two life insurers owned by China’s Dajia Life Insurance Group. Dajia holds over 42 percent of Tongyang Life shares and a 100 percent stake in ABL Life.

Tongyang and ABL have total combined assets of 49.9 trillion won ($36 billion) as of end-March. Together they stand as the sixth-largest market player by asset size after Samsung, Kyobo, Hanwha, Shinhan and NH NongHyup. The acquisition will take shape, as indicated by a memorandum of understanding signed between Woori and Dajia last week. It will fortify Woori’s insurance business, a decade after it sold off Woori Aviva Life in 2014.

The development followed Woori Financial opting out of an acquisition deal for Lotte Insurance, June 28, a move market watchers said was to prime the Tongyang and ABL acquisitions.

Unionized Tongyang Life and ABL Life workers hold a rally in front of the Seoul Government Complex in Gwanghwamun, Wednesday. Courtesy of Korean Finance & Service Workers’ Union.

“Woori Financial should guarantee Tongyang and ABL workers continued employment after the acquisition,” the group said during a rally in front of the Seoul Government Complex in Gwanghwamun.

“Also to be observed are previous agreements between management and unionized workers. We expect the independent management of the two firms to be evidenced by no corporate restructuring, affiliate spinoffs or hiring of subcontractors to outsource our jobs.”

They criticized the Financial Services Commission (FSC) over what they characterized as a “failed oversight of the problematic acquisition.”

“The FSC rushed to approve the acquisition with no consideration for the job security, basic rights to labor or the healthy growth of the two firms,” they said.

“Any further confusion or violation of labor rights will lead to a full-fledged, extended collective walkout.”