Korea Hydro & Nuclear Power, Controversy Over Voluntary Wage Return by All Employees... "Voluntary but Not Voluntary"

10-30% for department heads, 1-30% for others
Employees "Reluctantly Returning"
Hansu-won "Voluntary Implementation, No Disadvantages"

[Asia Economy Reporter Moon Chaeseok] Korea Hydro & Nuclear Power (KHNP), under the Ministry of Trade, Industry and Energy, is facing controversy after sending an official letter to all employees requesting voluntary wage returns. This decision was made as part of the government's plan for high-ranking officials, including ministers and vice ministers, to return part of their salaries to share the burden of the COVID-19 pandemic. While heads of affiliated public institutions were also joining in, there is dissatisfaction that the scope of application is too broad. Employees worry that this "voluntary" measure is not truly voluntary and that they will have no choice but to comply due to peer pressure. Concerns have also been raised about potential impacts on personnel evaluations.

According to KHNP on the 26th, on the 24th, they sent an official letter titled "Notice of Wage Return Implementation for Sharing COVID-19 Burden" to employees. The letter states that department heads can return 10-30% of their wages voluntarily, and other employees 1-30%, but in reality, many say this is more like a "compulsory" measure. The letter also mentions that consent forms will be collected from employees at grade 3 or below (department head or lower) starting early next month, leading to reactions that it would be difficult to refuse alone.

Some employees and labor unions say, "We agree with the intent but feel it is excessive." An employee at grade 3 or below at KHNP said, "The company has already donated money and supplies several times to affected areas, but it is strange that after the government decided that high-ranking officials would return part of their salaries, a voluntary wage return letter was sent to employees. While we agree with the intent, if colleagues donate, it feels uncomfortable as if we have to follow reluctantly under pressure."

A KHNP union official added, "There are probably not many employees who agree with the company's claim of 'voluntariness'." Earlier, on the 5th, KHNP donated a total of 1 billion KRW worth of money and supplies to Daegu, Gyeongbuk, and Gyeongju. Last month, they also provided emergency support of 100 million KRW each to Daegu, Gyeongbuk, and Gyeongju, totaling 300 million KRW.

Other government ministries and public enterprises do not seem to agree with voluntary wage returns from all employees. According to Asia Economy's comprehensive reporting, even before Korea District Heating Corporation (KDHC) announced on the 23rd that it would return 10% of executives' annual salaries?the first public enterprise to do so?officials from about ten public institutions had already voiced that full application is difficult.

An official from a public institution under the Ministry of Trade, Industry and Energy said, "Even if executives pay a burden-sharing fee according to government guidelines and social norms, if this is extended to general employees, it will face opposition from labor unions." Another official from a different institution said, "For listed public enterprises, executives' salaries must be disclosed to shareholders, so deciding on executives' wage returns is already cautious, and demanding returns from all employees is unrealistic."

A KHNP official said, "Whether to return wages is entirely voluntary. Employees who want to return can do so, and those who do not want to are not required." They added, "There will be no disadvantages in personnel evaluations or work." KHNP stated that the returned wages will be used to revitalize the local economy and support vulnerable groups.

Meanwhile, President Jeong Jae-hoon and executives at the headquarters level will return 30% of their monthly salaries for four months starting this month.

After the article was published, a KHNP official said, "We emphasized once again through an email to all employees that the principle of wage return being voluntary is clear," and added, "Especially for employees at grade 3 or below, the participation method was provided only for those willing to join, and the intent was also explained to the labor union."

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