Chanel Korea’s sales employees, working at domestic department stores and duty-free shops, have launched an all-out strike.

Members of the Korean unit of the French luxury fashion house’s labour union, representing sales workers at department stores and duty-free shops, went on strike from Friday to Monday due to management’s deceptive negotiation attitude and the reversal of the company’s basic pay system, according to the Korean Confederation of Trade Unions.

The labour union asserted that management disrupted the basic wage system by establishing a higher basic pay for new sales staff compared to employees with 10 years of experience.

Additionally, it pointed out that Chanel Korea transferred US$223 million out of last year’s $224.7 million in profits to Chanel headquarters in Luxembourg, demanding a fair profit distribution.

Against this backdrop, the labour union intends to continue with online activism following this month’s all-out strike.

Through online campaigns, the labour union aims to actively publicize the reason behind its strike and will hold an all-out strike resolution meeting from September 8 to 10.

In the meantime, Chanel chalked up sales of $1.1 billion in the South Korean market last year, up 30 per cent year on year, with its operating profits estimated at $309.3 million, a 66 per cent increase year on year.

During the same period, its net profit jumped by 74 per cent to $233.3 million.

Chanel Korea transferred the majority of its net profit, $221 million, to the Luxembourg entity Chanel S.a.r.l in the form of a dividend. This represented an increase of 327.5 per cent compared to $51.6 million a year ago.

This story was originally published by Yonhap, via Korea Bizwire.