Shareholders OK Techwin name change amid protest

Shareholders of defense equipment maker Samsung Techwin approved a plan to change its name to Hanwha Techwin amid strong opposition from its labor union members on Monday.

The meeting had planned to open early in the morning, but was delayed for hours due to physical protests from the union members, who opposed Hanwha‘s takeover of the company.

More than 140 union supporters were taken into custody after clashing with police at the meeting venue in Seongnam, Gyeonggi Province.

Since the Samsung-Hanwha deal was announced late last year, Techwin workers have opposed the sale, demanding Hanwha Group meet 17 conditions, including those regarding job security and a hefty incentive.

The company has offered a one-off payment of 40 million won ($36,000) to ease the issue, but the union rejected the management’s proposal.

The union claims the employees were not given any information regarding the deal, and that the management’s decision to keep them in the dark is at the root of their issue.

The union, which was established almost immediately after the Samsung-Hanwha deal was announced, also staged rallies outside Samsung Group’s office in Southern Seoul.

Along with Techwin, Hanwha Group took over Samsung Group’s petrochemicals units, taking control of a total of four Samsung Group units.

Analysts said the company is expected to undergo severe labor strife after the merged company is officially launched under Hanwha Group.

By Suk Gee-hyun (monicasuk@heraldcorp.com)