Legal Battle over Ordinary Wages: Businesses to Shoulder Huge Costs When Losing Ordinary Wage Suits | BusinessKorea

Friday, December 15, 2017

When 25 large businesses, which are currently in a legal battle over ordinary wages with their labor unions, all lose the suits, it will cost them more than 8 trillion won (US$7 billion).
When 25 large businesses, which are currently in a legal battle over ordinary wages with their labor unions, all lose the suits, it will cost them more than 8 trillion won (US$7 billion).
SEOUL,KOREA
11 August 2017 - 12:15pm
Yoon Yung Sil

When 25 large companies, which are currently in a legal battle over ordinary wages with their labor unions, all lose the suits, it will cost them more than 8 trillion won (US$7 billion). The figure accounts for 36 percent of their total labor costs last year. 

According to a survey of 35 large businesses with more than 450 employees, which are in a legal battle over ordinary wages, conducted by the Korea Economic Research Institute (KERI) on August 10, 25 out of them said their estimated cost burden, including delay charge and retroactive pay, would reach 8.37 trillion won (US$7.33 billion) when they lose the suits over ordinary wages

If the companies lose the suit and all the bonuses and other benefits are accepted as ordinary wages, the expected increase rate of ordinary wages will be 64.9 percent on average.

The number of lawsuits against 35 large businesses over ordinary wages totals 103. Excluding four cases concluded, each company currently has 2.8 ongoing lawsuits on average. The respondents of the survey conducted by the KERI include Kia Motors, Asiana Airlines, Woori Bank, Samsung Heavy Industries and SK Energy. 

Categories: 

Copyright 2013 BusinessKorea Co., Ltd.
301 Samdo Building, 12-1
Yeoido-dong, Yeongdeungpo-gu
Seoul, Korea 150-010
Tel: +82-2-578-3220
Fax: +82-2-578-3224
Email: contact@businesskorea.co.kr

 
 

Web design by: