OECD starts talks between Chanel Korea and union

The Korean branch of the Organization for Economic Cooperation and Development (OECD) said Friday it has decided to begin mediation procedures between Chanel Korea's labor union and management over the company's alleged violation of labor acts and human rights.

Last December, employees of the French luxury brand's cosmetics counters at department stores and duty-free shops filed a complaint with the OECD's Korean National Contact Point (KNCP) claiming the company did not pay proper wages while forcing them to work on holidays and changed employees' work schedules without prior consultations.

The union also accused the company of poor responses to sexual harassment cases, as well failing to implement agreed-upon pandemic working regulations.

After deliberation, the Korean office decided to initiate an arbitration process by forming a committee that the union and management voluntarily take part in.

The mediation is supposed to be wrapped up before Dec. 10, or within one year of the complaint being accepted.

The company has said it has been handling harassment complaints in accordance with the law, and holiday work was properly compensated. It also claimed it has provided workers with proper working guidelines and necessary information under the pandemic situation.

"We've reviewed statements from both sides and various other materials, and decided to begin the mediation. We see the need to contribute to resolving the issue by arranging dialogue between the parties," the Korean office said in a release.

If the two sides fail to reach an agreement, the KNCP will close the case after issuing a final statement that carries claims of both sides and its recommendations.

Established in 2001, the KNCP is meant to promote the OECD Guidelines for Multinational Enterprises, voluntary and non-binding recommendations aimed at minimizing adverse impacts from activities of multinational firms and strengthening responsible business.

A total of 50 nations, including 38 OECD member nations, now operate NCPs of their own, the ministry said.

In December, Chanel Korea's union went on strike, demanding holiday pay and improvements in their working environments.

Yonhap