Pernod Ricard Korea hit by labor conflict and dwindling sales

2018.06.04 13:34:03 | 2018.06.04 13:36:52

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Pernod Ricard Korea, the Korean unit of French liquor company Pernod Ricard, is grappling with multiple scourges - sagging sales, labor unrest, and sexual harassment scandal.

The labor union of the liquor distributor recently released a statement arguing the management led by Jean Touboul since 2016 has caused a serious crisis to the company by abusing power and treating employees badly. The union said the executives frequently abused workers verbally and even sexually harassed a female worker going through infertility treatment.

¡°About 45 workers or 17 percent of the entire workers have left the company since Jean Touboul led the firm,¡± said the union.

Many employees of its Jeju branch taking up about 20 percent sales of its famous brand Imperial moved to rivals because they couldn¡¯t stand the management¡¯s oppressive behaviors, it added.

The unionized workers plan to stage a strike and file for complaint with the labor ministry and the National Assembly. The management refuted workers¡¯ claims and said that they would settle the problem with the union through conversation.

The union-management dispute comes at a time when the company is saddled with dwindling sales. Pernod Ricard that distributes the globally well-known whisky labels such as Ballantine¡¯s and Imperial saw its sales in Korea plunge to 196.5 billion won ($183 million) in 2016 from 324.3 billion won in 2012 amid the sluggishness in the hard liquor.

Korean demand for whisky has been on the steady decline for nearly a decade amid lengthy economic slowdown. The country¡¯s powerful anti-graft law that took effect in late 2016 and growing popularity of lighter spirits in recent years has further cut whisky sales in the country.

By Kim Byung-ho and Choi Mira

[¨Ï Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]