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| Homeplus union members urge management to retract a decision to terminate contracts with subcontractors, during a press conference at the company's headquarters in Seoul, Thursday. / Courtesy of Korean Mart Labor Union |
Retailer also hit by disclosure of worker death
By Park Jae-hyuk
Homeplus is facing a backlash from subcontracted workers for a decision to terminate contracts with eight subcontractors, according to the discount chain's union, Sunday.
The conflict is expected to intensify further as the death of a subcontracted worker in April was belatedly revealed the day the union held a press conference to criticize the contract termination.
On Thursday, the union urged management to retract the decision to terminate the contracts during a press conference in front of the company's headquarters in Seoul.
Homeplus sent a letter to the union in October to notify them that it would not renew contracts with five private security companies which will end Dec. 31.
The retailer also informed three subcontractors of the expiration of contracts.
According to the union, the number of subcontracted workers who work at Homeplus stores nationwide amounts to 1,700.
"The recent decision on contract termination goes against a collective agreement. It's illegal restructuring," Joo Jae-hyeon, head of the union said at the press conference. "We will fight for the survival of subcontracted workers and store safety."
On the day of the press conference, a local news outlet reported a 47-year-old subcontracted worker, who had worked at Homeplus' Gimpo Pungmu branch in Gyeonggi Province for more than 10 years, died at the store April 3.
According to the news outlet, the employee of a facility management company named Maxerve was found lying on the floor in the store's HVAC systems room an hour after he left his office, complaining about chest pains.
The bereaved family filed a complaint against the store manager with the police claiming poor first aid contributed to his death, although Homeplus claims he did his best to save the employee.
The hypermarket chain also said its decision on the contracts was not illegal.
"We just notified them that our contracts with subcontractors will expire this year," the company official said.
Homeplus plans to hire 140 workers from private security firms as permanent employees.
According to the retailer, most subcontracted workers are part-timers who have served as greeters.
However, the union wants full time employment for all 1,700 subcontracted workers.
It plans to hold rallies at Homeplus stores nationwide, to pressure management to accept the demand.
In July, Homeplus changed the status of 430 long-time irregular employees to regular workers.
"Despite the tough business environment, we made the decision to be in line with the government policy to only have permanent employees," Homeplus CEO Lim Il-soon said at that time.
