Committee criticizes 'pushing ahead with business amid ongoing dispute'

Calls for National Assembly to enact 'HOKA law'

Members of the emergency committee representing employees of Joyworks, the existing domestic distributor of HOKA, urge the National Assembly to resolve the dispute. [Provided by Joyworks emergency committee]
Members of the emergency committee representing employees of Joyworks, the existing domestic distributor of HOKA, urge the National Assembly to resolve the dispute. [Provided by Joyworks emergency committee]

The emergency committee of employees at Joyworks, the existing domestic distributor of global running shoe brand HOKA, on Friday demanded that Eland halt its recruitment process for a dedicated HOKA team.

In a statement released that day, the committee said "a dispute over the existing distribution contract and the transfer of distribution rights between Deckers' headquarters and Joyworks is still ongoing in international arbitration proceedings," and went on to say that "it is contradictory for Eland to build a dedicated organization and push ahead with business while the dispute remains unresolved."

The committee added that "the hasty recruitment and attempt to accelerate business operations will not only undermine the job security of existing Joyworks employees, but could also inflict secondary harm on newly hired staff due to uncertainty depending on the outcome of the main lawsuit," and called for the hiring to stop.

The committee also expressed regret, saying that "Eland, which has long emphasized integrity and mutual growth, is contradicting its own corporate values by wading into a matter under active legal dispute, disregarding the contributions of small and medium-sized enterprises and threatening the livelihoods of existing employees."

Going forward, the committee plans to continue pushing for the enactment of a so-called "HOKA law" through the National Assembly. The proposed legislation would require that distributors who built up an overseas brand in the domestic market be compensated for their investment and achievements if they lose their distribution rights.

The committee stressed that "a systemic safeguard is needed to prevent the recurring pattern in which, once a brand establishes itself in the market, distribution rights are transferred to a large conglomerate and small and medium-sized enterprise workers lose their jobs overnight."


spa@heraldcorp.com