Aftermath of COVID-19, the Pain Was Not Equal

Paid Leave Converted to Remote Work, etc.

Large Corporations Implement Measures Early

Unpaid Leave, Hiring Cancellations, Layoffs, etc.

Chilly Winds for Partner Company Non-Regular Workers

Record High Unemployment Benefits Expected Last Month

The True Face of Polarization in the Job Market Revealed

[Asia Economy Reporter Lim Hye-seon] As the novel coronavirus infection (COVID-19) spreads in the distribution industry, the scale of damage in the labor market is also becoming polarized. While large corporations quickly switched to remote work systems or paid leave for regular employees, non-regular workers have been pushed to the employment cliff. Hiring cancellations and layoffs have occurred one after another, revealing the true face of polarization in the job market.

◆Large Corporation Regular Employees Expand Remote Work= On the 5th, Hyundai Department Store announced that regular employees will conduct two-shift remote work until the 15th. Employees are divided into two groups, with one group going to work and the other working from home. The same applies to Hyundai Department Store Duty-Free employees. Lotte Duty-Free is conducting remote work for about 400 headquarters executives and employees until the 6th. The decision to extend will be made depending on the spread of COVID-19. The home shopping industry has also started remote work except for essential broadcasting production personnel. GS Home Shopping and CJ ENM O Shopping Division are conducting remote work until the 8th, excluding the minimum staff related to broadcasting. Lotte Home Shopping has all employees working remotely. E-Mart and Homeplus are implementing remote work for pregnant employees. A distribution industry official explained, "Due to the nature of distribution, there are many cases of contact with unspecified large numbers of people in multi-use facilities, so we are being cautious," adding, "We are expanding organic response measures according to the guidelines of health authorities."

The fashion industry is also expanding remote work. Youngone Corporation is implementing flexible work systems such as remote work and staggered commuting hours. Kolon Fashion Materials has entered self-quarantine through remote work for all employees. Fila Korea changed commuting hours for executives at team leader level and above, and general employees started remote work. LF is conducting remote work for pregnant employees and expanding flexible work systems for executives and employees to freely adjust commuting hours.

◆Tears of Non-Regular Workers: Hiring Cancellations and Layoffs= The working environment for non-regular workers is in stark contrast. Hiring cancellations, unpaid leave, and layoffs have occurred one after another for non-regular workers. In the past month, about 10% of store workers (totaling about 1,500) at a duty-free shop in Seoul quit. Most of them are non-regular employees of partner companies. As customers stopped coming due to the COVID-19 situation and duty-free sales plummeted, it is analyzed that tenant brands started workforce restructuring. In fact, last month, sales at the 'Big 3' duty-free shops?Lotte, Shilla, and Shinsegae?decreased by 60-70% compared to the same period last year.

Lee (31), who works at a duty-free shop at Incheon Airport, said, "On the 2nd of last month, when the Chinese government announced restrictions on issuing travel visas in the media, all contract and part-time employees were immediately laid off," explaining, "Duty-free shops are affected by external environmental changes, so there are relatively more non-regular workers than regular employees." Non-regular workers account for 80-85% of duty-free shop employees.

There are also cases of resignations before completing probation after being hired at luxury brand stores. Kim (28) was hired as a one-year contract employee at the British brand Burberry duty-free store in January this year but was notified of dismissal after about two months of work. This was due to the decrease in tourists and sales caused by the COVID-19 situation. Ultimately, Kim resigned without completing probation. Kim said, "I heard that the headquarters laid off all probationary employees," adding, "I finally got a job after two years of trying, but I don't know if I can get a job again in a job market narrower than the eye of a needle," lowering his head.

◆Small and Medium Partner Companies: Hiring Market Freezing?= As the COVID-19 situation shows signs of prolongation, restructuring of duty-free shop partner companies is expected to continue. Park (29), who works at a duty-free shop in Seoul, said, "Duty-free shops are in the worst situation," adding, "They are sending unpaid leave or only minimal staff to work, but there are also talks of layoffs, so it is unsettling." Hiring is also expected to stop. Kim (28), who recently had an interview, said, "I received a job offer on the 2nd of last month, but the start date was postponed," adding, "I haven't heard from headquarters for over a month, and there are almost no job postings, so I am just waiting helplessly."

Last month, the number of unemployment benefit (job-seeking allowance) applicants is expected to have reached a record high. According to the Ministry of Employment and Labor, 174,000 people newly applied for job-seeking allowance last month, an increase of 3,000 compared to the same month last year. On the other hand, the increase in employment insurance subscribers is expected to slow down.

This content was produced with the assistance of AI translation services.