[Editorial] Hanjin crisis on mend?

Cho Nam-ho, chairman of Hanjin Heavy Industries and Construction, vows to settle his company’s labor dispute at an early date ― one of the worst the nation has witnessed in recent years. He should, if he wishes to restore his reputation as a businessman, which has been seriously damaged by his evasive action.

The company’s Busan shipyard has remained crippled since unionized workers went on strike in February, when the company laid off 400 employees. Moreover, outside labor activists and dissidents have teamed up with the striking workers, one of them staging a sit-in protest atop a 40-meter-high crane for more than 200 days.

To make matters worse, Cho left the country on June 17, the day he was set to testify before a parliamentary committee on the layoffs, dubiously claiming that he had to negotiate orders with foreign shipping companies. He returned home on Monday, apparently under pressure from the political parties that had rescheduled his testimony for next Wednesday and vowed to take action against him if he failed to show up again.

At a news conference on Wednesday, he said he would testify before the Environment and Labor Committee and that he had no intention of shirking his responsibility as the top manager of the shipbuilding company. If so, why did he leave the country ― an act that appeared to be bordering on cowardice ― in the first place?

He addressed an issue of concern to Busan residents when he said his company would never close its Busan shipyard. Rumors had been circulating about the company planning to close the Busan shipyard and relocate the facilities to its Philippine shipyard.

But he vowed not to yield to the union’s demand that laid-off workers be rehired, saying that restructuring was necessary for survival. Given this remark, there is little likelihood that the labor dispute will be settled at an early date.

Now the key question is whether or not Hanjin breached the law when it laid off workers ― an issue that will be dealt with at the parliamentary hearing and determined in court. In the meantime, the company will have to do its best to persuade the striking workers to return to work and turn the Busan shipyard around as soon as possible. It goes without saying that Cho will have to faithfully testify on the layoffs during the hearing.