Labor tensions rise at LG Chem’s Cheongju plant as unions oppose temporary leave measures affecting unassigned workers after business divestments.
Labor unrest is mounting at LG Chem’s Cheongju manufacturing complex after the company announced a temporary shutdown plan affecting employees who remain without reassignment following recent business divestments. The move has sparked strong criticism from labor unions, which argue that the decision signals the beginning of a broader restructuring process and threatens workers’ job security.
Industry sources revealed on May 11 that approximately 80 employees at the Cheongju plant will be placed on temporary leave through the end of this year. These workers were previously employed in business segments that LG Chem recently sold off, including operations related to polarizing film materials and water treatment filter production. Since the sale of these units, the affected employees have reportedly not yet been assigned to alternative positions within the company.
According to the company, the temporary leave arrangement includes compensation equivalent to 70% of employees’ average wages during the shutdown period. LG Chem also stated that workers would be permitted to take secondary employment opportunities if they receive prior approval from the company. In addition, management assured employees that they would be reinstated immediately once appropriate roles become available inside the organization.
LG Chem defended the measure as a necessary operational adjustment intended to improve long-term business competitiveness and maintain sustainable management stability. The company emphasized that the temporary leave decision should not be interpreted as a precursor to forced layoffs or involuntary workforce reductions. Officials described the action as an unavoidable response to changing business conditions following the divestment of several divisions.
Despite these assurances, labor representatives have reacted sharply against the decision. The Cheongju branch of the Korean Chemical, Textile, Food and Allied Workers’ Union, representing employees of both LG Chem and LG Energy Solution, publicly condemned the company’s actions during a press conference held outside the local office of the Ministry of Employment and Labor.
Union leaders argued that the temporary shutdown effectively strips workers of their livelihoods and places the burden of corporate management decisions on employees. They expressed concern that the measure could ultimately be used as a restructuring mechanism, even if the company currently denies any intention to reduce headcount.
A major source of frustration for workers has been the short notice period provided before implementation. The union claimed that employees were informed of the temporary leave plan on May 6, only five days before the measure was set to take effect. Labor representatives criticized this approach as unilateral and lacking adequate consultation with workers or their representatives.
In a strongly worded statement, the union accused the company of transferring the consequences of management failures onto employees while offering them insufficient time to prepare for the resulting financial and employment uncertainties. Union officials called for the immediate withdrawal or suspension of the temporary shutdown plan and urged authorities to closely examine whether the action could violate labor protections or be misused as a restructuring strategy.
The situation at the Cheongju plant highlights growing tensions between corporate restructuring efforts and labor rights protections in South Korea’s industrial sector. As global economic pressures continue to reshape manufacturing operations, disputes over workforce management, reassignment, and job stability are becoming increasingly prominent, particularly in industries undergoing business portfolio adjustments and strategic realignment.
