Korean Air Reduces Prescribed Working Hours from 226 to 209 for the First Time in 20 Years

Tentative Wage Agreement Approved Between Labor and Management
Hourly Wage to Rise by 8% Due to Increased Overtime Allowances

Korean Air is overhauling its wage system for the first time in 20 years, including reducing the prescribed working hours.

Korean Air aircraft. Provided by Korean Air

According to Korean Air on June 25, a tentative wage agreement was approved with 59.5% of the votes in favor in a union member vote held from June 20 to 24.

The tentative agreement between Korean Air management and the union includes adjusting the base salary within a total increase of 2.7%, and incorporating bonuses equivalent to 850% of the base salary into ordinary wages, which will be used as the basis for calculating overtime and annual leave allowances. The agreement also includes reducing the monthly standard working hours (prescribed working hours) from 226 hours to 209 hours.

If employees work beyond the prescribed working hours, they are entitled to additional allowances for overtime, night, and holiday work. Since the threshold for overtime has been lowered, employees are expected to receive increased allowances for extra working hours. As a result, the hourly wage for employees who work beyond the prescribed hours is expected to rise by about 8%.

This is the first time in 20 years that Korean Air has adjusted its prescribed working hours. Although the union had continuously demanded this change, an agreement was not reached with management until now. It is reported that this tentative agreement was reached by taking into account last year's merger with Asiana Airlines and recent court rulings related to ordinary wages.

Korean Air management and the union also agreed to enhance employee welfare. The agreement includes an increase in monthly housing subsidies, expanded support for home purchase and rental loans and interest payments, the introduction of new qualification allowances, and a revision of the rules for employee airline ticket usage.

Industry observers believe that Asiana Airlines, which is scheduled to merge with Korean Air by the end of next year, is also likely to adjust its prescribed working hours. Asiana Airlines currently applies a prescribed working hour standard of 226 hours per month.