“We are no longer passive” – ​​WEMADE employees formed a union because they were worried about layoffs and restructuring

The Korean company WEMADE officially started as a trade union under the National Federation of Chemical, Textile and Food Industries, affiliated to the KCTU (Korean Confederation of Trade Unions). Employees expressed concerns about the change of the largest shareholder, deteriorating financial performance and uncertainty about the future fate of the business.

The WEMADE trade union branch issued a declaration of establishment and announced the official launch of its activities. In the document, the organization called for ensuring employee employment, making the distribution system of labor results more transparent and starting negotiations with management.

Employees cited the situation surrounding their largest shareholder as a reason to unionize. WEMADE founder Park Kwang Ho sold 100% of his shares, after which control of the company was transferred to the new owners. Amid weak performance and challenges within the WEMIX ecosystem, employees are wary of layoffs and changes in business direction.

According to the union, management has not provided employees with adequate explanations about the organization’s future structure and job security. The lack of information has increased workers’ concerns about possible layoffs and cuts to individual projects, the statement said.

“WEMADE’s growth is due to the efforts of all employees, including developers, business units, operations and support staff, who work on site day and night. However, in a rapidly changing market, the results of successful projects are concentrated on individual managers and shareholders, while the responsibility and uncertainty caused by business changes and poor performance fall directly on individual employees,” the statement said.

Unions also drew attention to pay conditions. Bonus payment standards, salary structures and social benefits were all changed unilaterally without clear reasons. Employees said there had previously been no formal representative body within the company that could speak on their behalf on such matters.

In the upcoming negotiations, the union intends to achieve several demands:

• Artificial layoffs and dismissals based on changes to the largest shareholder, restructuring, etc. are prohibited;
• Transparent rules for paying bonuses and preventing deterioration of working conditions;
• If major changes occur in key business areas, initial consultations with employees must be carried out;
• Retain jobs in departments related to WEMIX and other key areas and confirm the continued existence of these departments.

“We will no longer be passive people entrusting our lives to the company’s unilateral decisions. No matter who becomes the largest shareholder, the real owners of WEMADE are the employees who founded the company. By organizing, we will eliminate work anxiety and build a fair and healthy workplace.” The union said.

The National Union of Chemical, Textile and Food Industries is part of the KCTU and unites some 50,000 workers in the petrochemical, textile, food, ICT and gaming industries. In the gaming industry, it already includes employees from Nexon, NC, Netmarble, Smilegate, Webzen and Neople.