LBM, the operator of London Bagel Museum, on the 13th said it would humbly accept the Ministry of Employment and Labor (MOEL)'s planned supervisory investigation results and again expressed apologies for shortcomings in managing the work environment. Kang Kwan-ku, who has led the company from its founding to the present, will resign as CEO.
LBM stated accordingly that it had launched a comprehensive review of its personnel, labor, industrial safety, and health management systems and begun strong improvements to prevent a recurrence. Kang said, "I sincerely apologize to all our members and customers for the shortcomings in managing the work environment," adding, "We will humbly accept the results of the planned supervision, fully recognize management responsibility, and I have decided to step down as CEO." Kang also said, "The company will take this matter as a turning point to modernize its business operation system with a new management team at the center and will continue to build a stable work environment where our members can trust and work."
Earlier, the Ministry of Employment and Labor (MOEL) pointed out in this investigation violations of the 52-hour workweek, errors in calculating reduced working hours, payment of medical care and leave compensation, and incomplete entries on pay statements.
Accordingly, LBM recalculated and completed payments for those for whom errors were confirmed regarding payroll calculations and compensation. However, for those requiring administrative procedures and former employees, payments will be completed by Feb.
It also improved corrective items in administrative management, such as specifying how to calculate amounts for each component of the pay statement. LBM completed hiring professional HR staff, revamped employment contracts, rechecked overall personnel affairs, and began operating a five-day workweek at all locations to comply with the 52-hour workweek.
It completed revisions to the rules of employment and HR regulations and is proceeding with reporting and registration with relevant agencies. It said it will finish introducing a new ERP and attendance management system within the first half of the year to supplement the existing system. LBM said it will fundamentally improve its in-house HR system and lay the groundwork for a stable work environment under a compliance-focused management policy.
At the same time, it moved to improve items flagged in the special industrial safety labor supervision, including insufficient safety and health education and management systems, the absence of safety and health supervisors, failure to conduct risk assessments at some business sites, and infrastructure deficiencies such as installing safety railings.
LBM completed standardizing each training process, including material safety and health training, and establishing a management system, and is currently conducting mandatory on-site training. On Nov., it introduced a "train first, assign later" system at all locations so that on-site placement is fundamentally impossible without confirming completion of training after hiring.
It also finished appointing safety and health supervisors at all locations, conducted risk assessments that were missed at some business sites, and institutionalized them going forward in a way that workers directly participate. It said it immediately improved some facilities and infrastructure flagged under industrial safety standards and, going forward, will apply safety standards as the top priority from the design stage in accordance with the Occupational Safety and Health Act.
In particular, it completed the digitalization and standardization of the safety and health management system and, starting this year, will form and operate a dedicated industrial safety and health team to continuously create a safe working environment.