Chungnam Intercity Bus Industry Warns of Employee Layoffs... "Due to Government Support Suspension and Financial Difficulties?"

The photo is unrelated to the article. Source=Asia Economy DB

[Asia Economy (Naepo) Reporter Jeong Il-woong] The intercity bus industry in Chungnam is taking steps to carry out employee layoffs in October. Although the companies claim that the layoffs are due to financial difficulties, the industry insiders and outsiders view the management unfavorably.

The ‘Chungnam Bus Transportation Business Association,’ consisting of five companies including Geumnam, Chungnam, Hanyang, Jungbu, and Samheung Express, recently officially announced that they will inevitably proceed with layoffs of transportation workers due to worsening business conditions caused by the COVID-19 pandemic.

The association plans to announce the layoffs, negotiate with the labor union regarding the scale and procedures of the layoffs, and implement the layoffs within October.

In particular, the association argues that it is no longer possible to maintain employee employment as the government’s employment retention subsidy payments have been discontinued.

Previously, the government had provided employment retention subsidies to the bus industry, which had deteriorated financially due to COVID-19, from March until recently. It has been confirmed that the association received approximately 2.3 billion KRW in support through this program.

However, the government support was temporary, limited to a six-month (180-day) period, and there is no decision yet regarding the continuation of subsidy payments.

For the same reason, the labor union suspects that the association is trying to pressure the government by holding employees hostage at this time when the subsidy is about to be cut off.

Above all, separate from the subsidy discontinuation, the union expresses discomfort that the association pulled out the layoff card just one month after signing a wage freeze and employment retention agreement with the union.

A union official said, “It is true, as the association (management) claims, that the bus industry has recently faced difficulties due to COVID-19,” but added, “However, since the association and the union already signed an agreement last month for shared pain (wage freeze and employment retention), proceeding with layoffs is a violation of that agreement.”

He criticized, “The association’s claim that they will carry out layoffs due to financial difficulties despite both sides promising employment retention and freezing wages this year is contradictory.”

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