Jinowei Rules Doosan Heavy Industries Production Workers' 'Suspension Unfair'... Business Community Regrets Lack of Flexibility

On the 27th, the Doosan Tower building in Dongdaemun-gu, Seoul, is visible as the government decided to inject 1.6 trillion won into Doosan Heavy Industries, which is experiencing financial difficulties, through the Korea Development Bank and the Export-Import Bank of Korea. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Ki-min Lee] Following the office workers at Doosan Heavy Industries & Construction, a ruling has been made that the suspension of production workers is unfair.

According to industry sources on the 27th, the Gyeongnam Regional Labor Relations Commission ruled in favor of 207 workers belonging to the Doosan Heavy Industries & Construction branch of the Metal Workers' Union Gyeongnam Chapter (production workers' union) in their 'unfair suspension relief application' filed against the company the day before.

Previously, in the unfair suspension relief application filed by 27 office union members, the Gyeongnam Labor Commission had ruled on the 30th of last month that Doosan Heavy Industries & Construction's suspension was unfair. If the company disagrees with the commission's decision, it can request a retrial at the Central Labor Relations Commission. Doosan Heavy Industries & Construction stated, "We will review the ruling once it is issued." Earlier, Doosan Heavy Industries & Construction began suspending work for about 350 employees from May this year until December 31. Currently, those subject to suspension are receiving 70% of their regular wages. The union opposed the suspension at the time, stating that "the company initiated the suspension without consulting the union."

Regarding the commission's judgment, some in the business community have pointed out that considering Doosan Group is implementing high-intensity self-help measures due to management difficulties and the spread of COVID-19, the regional labor commission's decision lacks flexibility. As Doosan Heavy Industries & Construction's management situation worsened, Doosan Group sold shares of Doosan Solus, a battery separator company, the golf course Club Modoo CC, and venture capital firm Neoplux to secure over 3 trillion won in liquidity, and also put Doosan Tower and Doosan Infracore on the market. Furthermore, to reduce labor costs, Doosan Heavy Industries & Construction conducted two rounds of voluntary retirement for about 2,000 employees from February to May this year. At the same time, starting in April this year, Doosan Group, including Doosan Heavy Industries & Construction, has had all executives return 30% of their salaries. Specifically, Doosan Heavy Industries & Construction reduced salaries by 50% for vice presidents and above, 40% for senior managing directors, and 30% for managing directors. Additionally, welfare expenses such as tuition payments for employees' children and new hires have been postponed. A representative from an economic organization commented, "While Doosan Heavy Industries & Construction is making every effort to overcome management difficulties through various measures, the commission's decision is somewhat regrettable."

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