South Korea's retail giant E-mart, apparently under pressure, granted 10,000 dispatch workers regular employee status Monday after the government ruled that they were working for the company illegally.
These dispatch workers, who E-Mart had previously paid a sub-contractor for them to work in 146 stores nationwide, will now be directly hired by the company.
Regular employees are ensured employment until retirement age, various welfare benefits including medical care, education support and pay up to 27 percent higher compared to dispatch workers.
The labor ministry ruled last Wednesday that E-mart was using illegally hired workers and ordered it to charge its hiring policies.
The decision by the country's No. 1 hypermarket, which is part of the Shinsegae Group, is expected to give stable employment to thousands of people in their 40s and 50s, at a cost to the retailer of 60 billion won (US$55 million) in additional outlays per year.
About 47 percent of the workers that will benefit from this are
women.
E-mart's decision is expected to affect other business establishments with similar labor arrangements.
E-mart said that its decision is based on trying to achieve a win-win arrangement with workers, and end the debate over the companies hiring practices, which have been criticized over the years for being discriminatory.
"The shift will allow E-mart to better share benefits with employees and meets its social obligations," a senior company executive said. He pledged that E mart will increase investment in benefits and hire more employees to meet national expectations.
The company said this is the second time that E-mart granted regular employment status to dispatch workers with 5,000 cashiers being hired in 2007. The company only put off the latest move because the burden it would pose in the running of the company, officials said.
(Yonhap News)
