"60% of Businesses Closed Due to COVID-19 Fail to Properly Pay Closure Allowances"

Korean Federation of Trade Unions Announces Survey Results from 355 Workplaces
203 Workplaces Affected or Expected to be Affected by COVID-19
"88% of Closed Workplaces Did Not Apply for Employment Retention Subsidy"

Asia Economy DB=Photo by Moon Honam munonam@

[Asia Economy Reporter Kim Bo-kyung] It has been revealed that 6 out of 10 workplaces that closed due to the impact of the novel coronavirus infection (COVID-19) did not properly pay their closure allowances.

According to a survey conducted by the Federation of Korean Trade Unions (FKTU) on the 13th, 124 out of 355 workplaces (35.1%) responded that there was an impact within the workplace due to the spread of COVID-19. Additionally, 79 workplaces (22.4%) stated that they expect an impact in the future.

The FKTU emphasized, "Workers in 203 workplaces, which is more than half of the surveyed workplaces, are suffering damages due to COVID-19," and added, "Effective government measures need to be urgently prepared."

Among the 203 workplaces affected or expected to be affected by COVID-19, 33 workplaces (16.3%) have closed or are currently closed.

Among the closed workplaces, 10 workplaces (30.3%) pay closure allowances amounting to 70% or more of the average wage, while 20 workplaces (60.6%) pay less than that, indicating that the majority are not properly paying closure allowances.

Asia Economy DB=Photo by Jinhyung Kang aymsdream@

Regarding the Employment Retention Subsidy provided by the government, 29 workplaces, accounting for 87.9% of the closed workplaces, have not applied for it, and only 2 workplaces (6.1%) responded that they have applied for the subsidy.

The FKTU stated, "Failing to properly pay closure allowances is a violation of the law, and thorough supervision must be conducted," and added, "An analysis of the causes and strengthened promotion are needed regarding the fact that many workplaces do not apply for the Employment Retention Subsidy despite its availability."

Among the 203 workplaces, 66 workplaces (32.5%) have reduced working hours. The extent of the reduction includes shortened working hours in 25 workplaces (37.9%), partial suspension of the workplace in 24 workplaces (36.4%), and full closure of the workplace in 1 workplace (1.5%).

The workplaces that responded to the survey indicated that the most requested government measure was 'establishment of safety measures' (239 responses, 67.3%), followed by paid leave (141 responses, 39.7%) and compensation for wage losses (101 responses, 28.5%).

Meanwhile, the FKTU conducted the survey targeting unionized workplaces under its affiliated organizations from the 25th of last month to the 5th of this month.

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