#701, Seoul YWCA, 1-1, Myeongdong 1-ga, Jung-gu, Seoul  (Postal code: 100-021)

    

Press Release Provided: 2009. 7.9 Tel: 774-4050 / FAX:774-4090 Person in Charge: Lee Jeong-su, General Affairs Manager Organizer: Kim Eun-ok     Support the Companies that Share the Pain of Labor-Management Relationship and Promote Economy by Sharing Jobs   Joblessness recently emerged as a big social issue as people even say it’s the ‘Age of One Million Jobless Young People’ and ‘Age of Three Million Jobless People’ caused by unstable job market. It can be said that the average people will suffer more financial difficulties as domestic companies are about launch a massive reorganization. To this, the Korea National Council of Consumer Organizations decided to fully participate in solving the problem of job insecurity in this economic crisis by supporting the ‘Share Work Campaign’ and promoting social consensus through sharing the pain of labor-management relationship so that the campaign can be implemented not just by a number of businesses but also by the government. 1. In May 2009, the number of people who were hired has decreased by 219,000 compared with the same term last year, while the number of unemployed people rose by 184,000 to 938,000 when compared with last year. The unemployment rate is getting high and it doesn’t look like economy will recover anytime soon, so it’s difficult for both businesses and household economy. Although prospects for economic recovery are still uncertain, but we can start overcoming the problem if businesses, families, and the government work together to create jobs and support employment by sharing jobs. 2. The ‘Share Work Campaign’ is participated by a number of companies (refer to the attached table). According to a report, the auto parts company S&T Daewoo and Good Morning Hospital in Pyeongtaek, Gyeonggi-do have reduced the number of working hours while directors at Korea Labor and Welfare Corporation and Daewoo Securities returned their paycheck or portion of their annual salary so their company can hire interns and participate in the ‘Share Work Campaign’. Lock & Lock changed the work shift from 2 team-2 shifts to 3 teams-2 shifts, so the company could hire 51 more employees. Hana Bank also announced that it could hire 200 more regular employees by saving money by encouraging annual paid vacation. In this social trend, a number of small and medium size companies have recently announced that they will make multilateral efforts to share and create jobs. They even announced that they will launch the ‘1 Company-1 New Employee Campaign’ to create jobs.  3. Such domestic companies’ reducing work hours, creating jobs by freezing and reducing pay, work system, and reassignment is nearly identical to ‘Work Sharing’ defined by the ILO (International Labor Organization). Although the employees and the management share different opinions on sharing work, both parties should agree that sharing work is necessary to share the pain in the unstable job market and economic crisis and try to create better jobs. In other words, the government must make efforts to offer welfare to labors to pay for basic living expenses by offering tax cuts to the companies participating in the Share Work Campaign and using the Employee Welfare Fund while also strengthening the Social Safety Net. Meanwhile, businesses should extend the scope of the Share Work Campaign by promoting labor-management talks and reaching an agreement. 4. The Korea National Council of Consumer Organizations will advertise the companies that are participating in the Share Work Campaign and encourage the use of products made by companies that are fully participating in social contribution activities in order to create consensus on the culture of sharing work and spread the culture of sharing, and ultimately contribute to the promotion of domestic economy based on such activities. Member Organizations Green Consumer Network in Korea, National YWCA of Korea, Korean Federation of Housewives Clubs, Studying Citizens Association for Studying Consumer Problems, National Council of Homemakers’ Classes, Korea Consumer Affairs Institute, Korea Consumer Education Center, Consumers Union of Korea, Korea YWCA     · Reference: Status of Work Sharing   Business Category Type of Business Date Under the Supervision of Contents 41 Busan Bank Private Service 4.20 FKTU · Held ‘Joint Labor-Management Announcement' · Created jobs by returning paycheck 40 Korea Export Insurance Corporation Public Service 4.13 FKTU · Directors returned 5~10% of their pay, managers returned 3~4% of their pay. · Hired interns through this 39 AAS Airport Services Private Service 4.10 KCTU · Froze pay 38 Daegu Bank Private Service 4.9 FKTU · Pay cut and mandatory annual paid vacation · Plans to hire 400 interns through this 37 Daewoo Shipbuilding & Marine Engineering Corp. Private Manufacturing 4.6 KCTU · Directors returned 10~20% of their pay. Positions ranging from assistant managers to general managers froze pay · Plans to hire 150 more employees through this 36 Korea Agricultural Trade Information Public Service 4.2 FKTU · Directors returned 6% of their annual salary, and managerial staff return 4~5% of their pay · Plans to hire more employees through this 35 Sungwoo Hitech Private Manufacturing 3.31 FKTU · Labor and management signed ‘Freeze Pay Agreement' 34 Korea District Heating Corp. Public Manufacturing 3.31 KCTU · 1~10% of pay returned according to position. Employees returned base wage. · Plans to hire more than 80 low pay laid off people 33 KDB Asset Management Co. Private Service 3.31 - · General managers and higher returned 5% of their pay · Plans to hire interns through this 32 EXCO Private Service 3.31 - · Directors returned 5% of their pay. Employees volunteered to return 1~2% of their pay · Hired more than 60 interns 31 Daewoo Securities Private Service 3.31 KCTU · All employees returned 10% of their pay           · Hired 60 interns through this 30 S-Oil Private Service 3.31 FKTU · Directors returned 15% of their bonus pay. Reduced first pay for college graduate employees by 10% · Hired 100 interns through this 29 Korea National Oil Corporation Public Service 3.30 FKTU · 2~5% of pay returned according to position. Reduced first pay for college graduate employees by 12% · Hired 50 interns through this 28 Hana Financial Group Private Service 3.30 FKTU · Encouraged employees to have a paid annual vacation · Hired 200 regular employees through this 27 Korea Enterprise Data Public Service 3.27 FKTU · Managers and directors returned 5% of their pay. Reduced first pay for college graduate employees by 12% · Hired interns through this 26 Kibo Technology Fund Public Service 3.27 FKTU · Managers and directors returned 5% of their pay. Reduced first pay for college graduate employees by 21.4% · Hired new employees and young interns 25 Korea Credit Guarantee Fund Public Service 3.27 FKTU · Managers and directors returned 5% of their pay. Reduced first pay for college graduate employees by 21% · Hired new employees and young interns 24 Korea Land Corporation Public Service 3.26 FKTU · Decided to reduce first pay for college graduate employees by 14%. Directors will return 10% of their annual salary.           · Hired 100 interns. Offered jobs to 190 to underprivileged people 23 Korea Securities Finance Corp. Private Service 3.25 KCTU · Directors’ pay cut by 10%. New employees’ pay cut by 15~20%. Employee welfare reduced by 5%.           · Hired twice more new employees (20). 22 National Health Insurance Corp. Public Service 3.23 FKTU · Directors returned 22.12% of their base salary. Plans to create 150 jobs through this 21 POSCO Specialty Steel Co. Private Manufacturing 3.23 FKTU · Made ‘Labor-Management Harmony Announcement’ to freeze pay and stabilize employment. 20 KEPCO Public Service 3.22 KCTU · Directors returned 10% of their pay and participated in work sharing. 19 Hyundai Motor Company Private Manufacturing 3.19 KCTU · Agreed to share work between factories · The purpose is to narrow the pay gap between factories caused by different sales volume by car model 18 CJ Private - 3.19 - · Froze pay · Plans to hire 1,650 interns (annually) 17 LG CNS Private Service 3.19 - · Froze pay among employees. Directors volunteered to return 10~15% of their pay · Plans to hire 440 more college graduates 16 GS Group Private - 3.16 - · Hired 650 interns · Directors volunteered to return 10~20% of their annual salary. Reduced first pay for college graduate employees by 7~10% 15 National Pension Service Public Service 3.15 - ·Each employee returned 1.3~7.5% of their pay according to position ·Plans to hire 263 interns 14 Dongkuk Steel Mill Co. Private Manufacturing 3.11 FKTU · Froze pay · Directors and office workers returned 10% of their pay. Agreed to create twice more new jobs than last year 13 BIF Corp. Private Manufacturing 3.10 - · Froze pay for two years · Directors’ pay cut by 50% 12 Korea Employment Promotion Agency for the Disabled Public Service 3.10 - · 83 directors and managerial staff returned 5~7% of their pay · Plans to hire 18 more young inters through this 11 Korean Federation of Community Credit Cooperatives Private Service 3.8 KCTU · Directors, employees, and newly hired employees’ pay cut · Plans to hire 500 regular employees, 400 assistant workers, and 100 interns for a total of 1,055 new employees 10 Hanwha Yeosu Factory Private Manufacturing 3.5 FKTU · Employees agreed to return 5% of their pay. Decided to hire 30 interns with the money 9 Korea Transportation Safety Authority Public Service 3.5 - · Pay cut by 16% for new college graduate employees (2.9 to 2.4 million won). Extended intern program 8 Hwaseung Group Private - 3.5 FKTU · More than 2,000 employees at eight subsidiary companies in Korea returned 10.15% of their pay (3 billion won). Decided to hire more than 100 more regular employees. 7 Hyundai Heavy Industries Private Manufacturing 3.4 - · Labor-Management Agreement 2009 Signed (Held ‘Joint Labor-Management Announcement and All Employees Promised to Overcome Global Crisis’) · No-dispute labor-management agreement for 15 consecutive years · Labor Union grants the company the full right to decide pay. Company promises to guarantee continued employment for three years. · CEO and Vice-Chairman Min Gye-sik and President Choi Gil-seon returned 100% of their pay. Eight vice-presidents returned 50% of their pay. More than 180 directors returned 30% of their pay. 6 STX Group Private - 3.3 - · Reduced first year pay for new college graduate employees by 20%. Hired 1,500 new employees (all regular employees) · STX Energy, STX Engine (Yongin), STX Enpaco, STX Pan Ocean, and other subsidiaries announce pay freeze 5 Woori Bank Private Service 2.24 KCTU · Reduced first year pay for new college graduate employees by 20% . (34 to 27 million won). Hired 50 more new employees through this · Hired 1,200 more young interns (300 people on each of the four occasions since March) 4 Hanwha Group Private - 2.23 - · Directors returned 10% of their annual salary and portion of their bonus pay to hire more interns (over 300 per year) 3 KB Financial Group Inc. Private Service 2.20   · Over 1,400 managers including general managers and branch managers (center chiefs included) returned 5% of their pay to use the money to create jobs. 2 S&T Daewoo Private Manufacturing 2.18 KCTU · 150 production workers on unpaid vacation (March 1~End of the year) · Readjusted work hours. Extended mandatory vacation program · Agreed to temporarily suspend employee benefits and bonuses. · Pay Cut: Directors by 30%. General managers, managers, assistant managers by 10~20% 1 Hanjin Heavy Industries & Construction Co. Private Manufacturing 2.16 KCTU · Construction Division, Hanjin Heavy Industries & Construction: Employees decided to return 10% of their annual salary and requested the company to maintain the current number of jobs or create new jobs · Shipbuilding Division, Hanjin Heavy Industries & Construction: Managers and higher positions voluntarily returned 100% of the 200% bonus they received at the end of last year (Data provided by: Economic and Social Development Commission. As of May 4, 2009)