"Adjusting Personnel Utilization Due to Decrease in New Orders... Not Restructuring"
Hyundai Engineering will implement a paid rotational leave system for its Plant Business Division. This measure comes as the operating rate of headquarters staff has declined, with overseas sites being completed one after another while new orders have slowed.
According to the company on the 17th, the rotational leave will be in effect for six months, from November 1 to April 30 of the following year. Approximately 1,000 headquarters employees will be divided into six groups, and each group will take one month of leave in sequence, starting on the first day of each month.
Salaries will include only base pay and certain fixed allowances, while benefits such as overtime pay and other welfare-related allowances will be excluded. After taxes and deductions, the actual amount received is reported to be about 70% of the average wage. Annual leave, performance bonuses, and severance pay will be recognized in the same way as for regular employees. Each team will autonomously organize its leave groups.
A Hyundai Engineering representative explained, "This is a temporary paid rotational leave system, taking into account the operating rate of personnel in the Plant Business Division. As overseas projects are being completed sequentially and new orders have temporarily decreased, this measure is intended to efficiently manage headquarters staff."
He also clarified, "Some have misunderstood this as restructuring or workforce reduction, but that is not the case. If it were restructuring, it would have to be applied to all employees of the Plant Business Division, not just headquarters staff. This leave is a measure limited to headquarters staff for operational efficiency." Regarding labor-management consultations, he added, "The meeting scheduled for the 20th is a regular labor-management consultation and is unrelated to this rotational leave."
Executives of the Hyundai Engineering Branch of the National Construction Workers' Union are conducting a publicity campaign at the Hyundai Engineering headquarters on the 16th. Hyundai Engineering Branch
The company’s labor union criticized the decision as "an attempt by management to evade responsibility," insisting that the company should withdraw the at-home standby measure and present a plan to normalize operations. The union plans to officially confirm with the company the background of this rotational leave and future workforce management plans, and will demand measures to ensure job security for union members.
Kwak Heeseung, head of the Hyundai Engineering Branch of the National Construction Workers' Union, said regarding this measure, "We received notice of the rotational leave implementation from the company late in the afternoon on the 15th. On the 16th, we conducted a publicity campaign, and from next Monday, we plan to enter negotiations on this issue." He added, "At present, we do not consider this to be a stage of restructuring, but there are concerns that it could be a preliminary step. We are closely monitoring the situation to protect our union members."
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