"Labor-Management Agreement Secures Employment"... Ministry of Employment Supports 2 Billion KRW for 40 Workplaces

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[Asia Economy Reporter Kim Bo-kyung] The Ministry of Employment and Labor announced on the 30th that it has conducted the first round of public recruitment for subsidies related to employment stability agreements between labor and management, deciding to provide 2 billion KRW to 45 workplaces.

The employment stability agreement subsidy is a program that supports the wage reduction resulting from companies' employment retention measures during the COVID-19 crisis. Employment retention measures refer to actions such as temporary closure or leave, reduction of working hours, shift system reorganization, and wage cuts or returns.

Among the 45 approved workplaces, most industries are manufacturing (26 places) and service (18 places), with workplaces having fewer than 100 employees accounting for the largest proportion at 31 places. The average approved support period per company is 4 months, and the average subsidy amount is 44 million KRW.

The employment stability agreement subsidy is mostly used to compensate for wages reduced due to employment retention measures. It is expected to help workers whose wages have decreased through the employment stability agreement.

The employment stability agreement subsidy requires that ▲ employers who face unavoidable employment adjustments ▲ reach a labor-management agreement on employment retention measures to maintain employment ▲ receive partial support for wage reductions from the government ▲ and employers must use the subsidy solely for worker support purposes.

This program accepts participation applications monthly until the end of this year. Workplaces wishing to participate can submit applications to the local employment and labor office with jurisdiction over their location.

Ryu Kyung-hee, Director of Labor-Management Cooperation Policy at the Ministry of Employment and Labor, stated, "We hope that the employment stability agreement subsidy will help labor and management on the ground demonstrate the spirit of coexistence and solidarity to maintain employment during the COVID-19 crisis."

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