[THE INVESTOR] Chanel Korea's management and its labor union announced on April 20 that they have successfully reached an agreement on working conditions.

“We will work hard with the union to create a congenial environment,” Chanel Korea said in a statement. The company refused to disclose the details of the agreement.

The labor union said it decided to bridge the gap with the company after 26 days of protests.

“The union was persuaded by the company’s sincerity, and this mutual trust will lay the ground for restoring and improving our relationship,” Kim So-yeon, a labor union representative said in a post on the union's website. She added that details of the talks will be disclosed to workers on April 26.

Chanel Korea’s union was formed decades ago, but this was the first time that the workers went on protest.

The conflict was over wages and the size of the workforce. Employees asked for a raise, and for the company to hire more people. According to the union, Chanel refused to negotiate a monthly raise of just to 6,000 won (US$5.64).  

Currently, around 70 percent of the 300 employees working at Chanel outlets work an average 12 hours a day and are therefore paid less than the minimum hourly wage of 7,530 won. Chanel Korea, however, denied such claims. It also declined to disclose any information about employee wages.

“It's rare for employees to even get a chance to form a union or express their opinion, so the recent development at Chanel was meaningful," said Kim Gi-duk, a labor case lawyer. "However, for the agreement to have an effect on the industry as a whole, the details should be disclosed.

By Song Seung-hyun (ssh@heraldcorp.com)