250 Formerly Retired KT Employees Lose First Trial in Unfair Dismissal Lawsuit

Court: "Not a Dismissal Due to Coercion"

Seoul Central District Court / Photo by Honam Moon munonam@

[Asia Economy Reporter Seongpil Cho] Former employees who took early retirement from KT filed a lawsuit claiming 'dismissal due to company coercion,' but lost in the first trial.

According to the court on the 21st, the Seoul Central District Court Civil Division 48 (Chief Judge Choi Hyung-pyo) ruled against the plaintiffs in a lawsuit filed by about 250 former KT employees, including Mr. Park, who took early retirement, seeking confirmation of invalidity of dismissal. The court stated, "Although the early retirement conditions were favorable and caused some hesitation, there were several KT employees who submitted statements saying they were not coerced during the interview process," and added, "It is difficult to recognize that the early retirement recommendation was coercion or pressure to the extent that the plaintiffs had no choice but to apply for early retirement."

In April 2014, KT, based on a labor-management agreement, accepted applications from employees with more than 15 years of actual service and more than one year remaining until retirement age, and about 8,300 employees took early retirement. In response, Mr. Park and other retirees claimed, "This constitutes dismissal forced by KT," and demanded the company compensate each early retiree 30 million won. However, the court judged that the selection criteria for early retirement candidates could not be seen as lacking rationality or fairness. The court stated, "Considering the restructuring plan, conditions of retirement, the pros and cons of retiring or continuing to work, and other personal circumstances comprehensively and carefully, it is reasonable to conclude that submitting the resignation letter was the best decision under the circumstances at that time."