News

04/03/2008 - Allianz Korea has accelerated the conflict with its workers by sacking local managers that exercised their trade union rights. UNI Global Union wrote to the Korean labour minister to ask for his good office to assist in re-establishing a constructive dialogue and encourage Allianz Korea to abide by core labour standards.

60% of Allianz Life Korea employees are now out on strike for the third months. The dispute concerns a breach of the valid collective agreement by the company. In 2005/2006, the two laid down that the introduction of a performance related pay system would be based on mutual agreement. The company then implemented a system unilaterally early this year. Subsequently, management sacked 106 managers for their participation in the strike. All attempts for constructive dialogue, also with Allianz Group management in Germany, were rebuffed.



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Mr. Lee Young-Hee

Minister of Labour

South Korea





Allianz Korea relations with Allianz Korea Trade Union

Dear Minister,



UNI Finance is the global union for the finance industry. It is part of UNI Global Union representing 20 million workers in 145 countries worldwide.



Our affiliate Allianz Life Korea Union has informed us that workers’ of Allianz Korea are now on strike for over two months. The strike is a result of the company breaching the valid collective agreement with our affiliate. Allianz is also disregarding the right of freedom of association as also guaranteed in Korean law by dismissing 106 branch managers for participating in the strike – branch managers too have the right to join a union and exercise their rights as employees. Moreover, Allianz Korea has refused constructive dialogue and Allianz Group top management, led by the CEO Michael Diekmann, rejected to meet with a Korean trade union delegation.



We would like to ask you to use your good office to assist in re-establishing a constructive dialogue and encourage Allianz Korea to abide by core labour standards.



UNI Finance as well as our Korean affiliate are committed to constructive industrial relations through dialogue and discussions enabling our members to secure decent work at their respective workplace. This is also a principle that Allianz Group upholds.



Allianz Group and its workers’ representatives in Europe signed an agreement on employee participation in 2006 that complements the company statutes of Allianz SE.



In the agreement, the two parties state that a precondition for the economic success of Allianz Group is an intensive dialogue between management and employee representatives and their unions.



More specifically,



“Allianz Group explicitly stands by the following goals: … To observe and implement the Fundamental Rights and Principles at Work of the International Labour Organisation (ILO) and the principles of the Global Compact and the OECD guidelines for multinational companies. These include the following ILO declarations: on the freedom of association and the right to collective bargaining …”



Through its CEO Michael Diekmann, Allianz Group also endorsed Principle 3 of the UN Global Compact. In addition, Allianz Group specified in a survey which UNI Finance conducted that it has taken on board the following Global Compact strategies to implement freedom of association and the right to collective bargaining:

• Ensure that all workers are able to form and join a trade union of their choice without fear of intimidation or reprisal.
  
• Support the establishment and functioning of local/national employers' organisations, and trade unions.
  
• Recognise representative organisations for the purpose of collective bargaining.
  
• Use collective bargaining as a constructive forum for addressing the working conditions and terms of employment and the relations between employers and workers, or their respective organisations.

We find the approach taken by Allianz disappointing and inconsistent with the commitments made by Allianz Group under the UN Global Compact and in the above-mentioned agreement as well as the standards set by the ILO and the OECD. Moreover, the company’s actions flout applicable Korean legislation. Allianz’s behaviour is evidently not compatible with the principles of good corporate governance and corporate responsibility that are expected of one of the leading insurance companies in the world.



We would very much appreciate your intervention and look forward to your reply.



Yours sincerely,