Three-Shift and Intermediate Shift Systems by Subsidiary
Base Pay Increases and Higher Allowances to Offset Wage Reductions
Labor-Management Agreement for Overarching Goal of Enhanced Safety
250 Additional Hires and 33 Billion Won Annual Investme
SPC Group is overhauling its production workforce system. Ahead of a company-wide rollout in October, a one-month pilot program will begin on September 1.
On August 27, SPC Group announced, "We are introducing a new work system that limits night shifts to under eight hours at all production sites across our subsidiaries," adding, "We have reached a tentative agreement after consultations with the representative labor unions of each subsidiary." This measure follows up on the "Plan to Eliminate Long Night Shifts," which was announced right after President Lee Jaemyung visited the SPC Samlip Siwha plant and held a meeting on July 27.
To address concerns about wage reductions due to shorter working hours, SPC Group has prepared supplementary measures for each subsidiary, such as raising base salaries, introducing new allowances, and increasing the premium rates for holiday and night work. A tentative agreement has already been reached between labor and management, and any remaining issues requiring further adjustment will be discussed through future collective bargaining agreements.
SPC Samlip and Shany will introduce a three-shift system. For example, the bakery line at the SPC Samlip Siwha plant will implement a three-shift system, with employees working six days a week on a provisional basis. The working hours for production workers will be reduced from 52 hours per week to 48 hours or less. To compensate for potential wage reductions due to fewer night and total working hours, base salaries have been increased and the premium rate for holiday allowances has been raised from 50% to 75%.
SPL will introduce an intermediate shift between the existing day and night shifts, and some lines will move to a six-day workweek to further reduce night work hours. The intermediate shift is designed to fill the gap created by the reduction in night work. As a wage compensation measure, the premium rate for night allowances will be increased from 50% to 79%, and special allowances will be provided. Paris Croissant, Shany, BR Korea, and other subsidiaries have also reached tentative agreements tailored to their specific circumstances.
The group plans to hire approximately 250 additional production workers as a result of this restructuring. Currently, of SPC Group's 22,000 employees, about 6,500 are production workers, and this change will increase the production workforce by about 4%. The group's annual additional costs, including increased labor and allowance expenses, are expected to total around 33 billion won. This is equivalent to approximately 43% of last year's total operating profit of 7.68 billion won.
Each SPC Group subsidiary will operate the new work system on a trial basis for one month next month, reviewing the system and incorporating additional feedback to ensure a smooth company-wide implementation from October 1.
An SPC Group representative stated, "In pursuit of the overarching goal of strengthening worker safety, we have worked closely with the representative labor unions of each subsidiary to find the best path forward. Along with this workforce system overhaul, we will also expedite efforts to reinforce the right to suspend work on-site and to establish new, smart, and safe factories, dedicating all our resources to enhancing safety."
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