Last year, December 16, Sammi Special Steel's administration suffered a shortage of fund. They were compelled to sell a large portion of the factory to Po-Hang. (2,342 workers out of a total 3,200, about 80%, were laid off and about 50% of total selling was reduced). After discussing this issue at a conference, the union asserted that they be compensated for the laid off by guanteeing an alternative employment.
But on February 17, Po-Hang Iron Manufacture Co.(partnership with Sammi) and Sammi Special Steel Inc made a unilateral decision to fire them and recruit new members in place of them.
They contend that they are not responsible for employment succession, which is clearly written in the contract. Under the Property Sales Contract, Po-Hang contend that it is not their responsibility to re-hire these workers, but rather it is Sammi's responsibility to address this problem. A month after the discussion, on March 19, Sammi group declared bankruptcy.
Moreover, Sammi decided to hold the wages of the workers and buy the materials needed to run the company with the meager fund left in their total account despite strong resentment by the workers.
Finally, the property preservation manager forced self-retirement for these workers with three and a half month worth of payments and minimum retirement grants. 70 workers accepted this offer and 180 workers are still demanding equitable settlement. These 180 workers are subsequently fired.