Homeplus Co.'s labor and management agreed to temporarily adjust employee treatment to normalize operations and revive the corporations. The plan is to ease liquidity pressures by partitioning regular bonuses and deferring wage payments.
Homeplus Co. said on the 31st that the two major labor unions—the Mart Workers' Union Homeplus Branch and the Korean Confederation of Trade Unions (KCTU) Homeplus General Workers' Union—and the employee representative body Hanmaeum Council agreed to cooperate on self-help measures to normalize the company.
Earlier, labor, management, and executives held a meeting on the 27th and decided to temporarily adjust the timing and method of payments under certain employee treatment systems to ease the company's liquidity burden and secure resources to normalize operations.
Under this labor-management agreement, regular bonuses scheduled for payment in September will be paid in equal installments over six months through partitioning. The employment stability support payment (up to 12 months of base pay), which had been paid when an employee of a closing store resigned, will no longer be paid. The consolation money for asset securitization stores, which had been paid when employees of closing stores were reassigned to other stores, will also be paid in equal installments over six months.
Wages will be deferred every two months until March next year. Accordingly, July pay will be paid in September.
Homeplus Co. expected that the agreement would allow it to proceed more smoothly with adjustments to the operation of some stores and closure procedures currently underway. The company plans to prioritize the emergency operating funds (DIP) of 200 billion won, once executed, for stabilizing product supply, normalizing operations, and paying employee wages and essential operating expenses.
A Homeplus Co. official said, "Even in a very difficult situation, the two major unions and employees made a weighty decision for normalization," adding, "We will focus all our capabilities on normalizing operations and restoring corporations value so that employees' concessions and cooperation are not in vain."
The official added, "For Homeplus Co. to normalize, not only the efforts of labor and management but also the cooperation of stakeholders, including partner companies, the government, and creditors, is essential," and said, "Please join forces so that Homeplus Co. can come back to life and employees' efforts are not in vain."