Kumho workers reject unionizing, USW to appeal

MACON, Ga. — Workers at the Kumho Tire Georgia Inc. plant in Macon have rejected plans to unionize, but the United Steelworkers (USW) union has filed a complaint with the National Labor Relations Board (NLRB) to challenge those results.

The election, held Oct. 12-13, failed 164-136, USW Organizing Director Maria Somma said in an email.

The USW filed unfair labor practice charges in addition to objections to the election with the NLRB on Oct. 17, according to Ms. Somma, who said the agency will investigate these claims, but for which no timetable has been outlined.

"The employer broke the law and intimidated many workers with threats of job loss and plant closures," she said. "They spent hundreds of thousands of dollars on anti-union consultants who spent hours every day performing psychological warfare on the workers."

Also on Oct. 17, the USW confirmed that Kumho terminated the employment of Mario Smith, an act Ms. Somma said was illegal, adding that Mr. Smith was one of the USW's main advocates.

"We will do whatever is necessary to protect the workers who are attempting to act on their legal right to form a union at their workplace," she said.

Kumho officials did not respond to requests for comment but did launch what it branded a union facts website — www.kumhounionfacts.com. According to the website, the company denies paying supervisors and team leaders a bonus of $2,000 to fight the union and claims that Kumho Tire Georgia has lost $20 million so far in 2017.

The website has since been shut down.

"We appreciate the confidence that has been shown in us by our employees," the firm posted to its website in the aftermath of the vote.

"We will do everything possible to earn your trust. We are humbled by the vote and look forward to coming together as a team. We plan to get back together with everyone soon to address a number of important matters. Thank you."

Ms. Somma said employees sought support from the USW when several concerns raised with management were not addressed. Among the concerns were the right to fair and equal treatment — including no discrimination, retaliation, favoritism or harassment — and that seniority should be the basis of selection for job signing, awarding overtime and scheduling vacation.

The union added that employees had safety concerns over a lack of adequate training, availability of personal protective equipment and written standards/procedures.

Ms. Somma said, to the union's knowledge, Kumho has not addressed these concerns.

A supermajority of the 300-plus employed by the plant signed union authorization cards, which initiated the election process. However, once employees opted to have an election, Ms. Somma said Kumho hired Labor Relations Institute Inc., which held "captive audience" meetings of five to seven people every shift, every day, along with personal one-on-one meetings with employees.

Kumho's union facts website also posted a series of videos encouraging employees to vote against the union.

The tactics subsequently caused fear among the workforce. Ms. Somma said Kumho threatened to close the plant, that its customers will not want the union and subsequently the company would lose business, and that management had been spying on workers who support the union.

If the NLRB petition fails, Ms. Somma said the USW will have to wait 12 months to begin the process of another unionization vote. That means the process of card collection will need to take place again.

"We will continue to work with the Korean union that represents the Kumho workers in their home country," she said. "We will also continue to point out to policymakers that they need to find ways to have oversight over the foreign companies to ensure they are following U.S. laws."

USW International President Leo Gerard also sent a letter to South Korea President Moon Jae-in prior to the election, raising concerns about Kumho Tire's actions toward workers in the U.S.

The letter claimed that since Kumho Tire is under control of a creditors' committee led by Korean Development Bank, the South Korean government could be held directly responsible for the behavior of the company's management.

He added that the company's behavior could have an impact in the possible renegotiation of the KORUS Free Trade Agreement between the U.S. and South Korea.

As of presstime, the USW said it had not received a response South Korea.

"We are concerned that by opposing the efforts of its workers to exercise their right to freedom of association by forming a union," Mr. Gerard said.

"Kumho Tire may violate its obligations under international agreements including Convention 87 of the International Labor Organization, Chapter 19 of the Korea-U.S. Free Trade Agreement, the International Covenant on Economic, Social and Cultural Rights, the Organisation for Economic Co-operation and Development Guidelines for Multinational Enterprises, and the United Nations Guiding Principles on Business and Human Rights, among others."

Kumho opened the $450 million Macon plant — its first in North America — in May 2016, eight years after initially breaking ground. The project was suspended for roughly five years before construction resumed in 2014.

The 861,113-sq.-ft. plant has an annual capacity of 4 million passenger and light truck tires.