Decided to Maintain the Dramatically Revived 'Purmil' Business... "Kneeling Down and Pleading Earnestly"

Purmil Moves Toward Maintaining Business with Workforce Reduction Conditions
"Abrupt Withdrawal of Business Termination... Normalization of Operations"

[Asia Economy Reporter Song Seung-yoon] Purmil, a dairy company embroiled in controversy over business closure and layoff notices, has withdrawn its previous stance and decided to continue its operations.

Purmil and the Purmil Labor Union announced on the 10th through an appeal letter that they would retract the business closure declaration scheduled for the 30th and normalize operations. This comes 24 days after the announcement of the business closure.

Purmil stated, "The company formed an emergency committee composed of employees and established an emergency management plan. Through the union's painful sacrifices and assistance, we reached an agreement on restructuring," adding, "With the decisive financial support from shareholders, a foundation has been laid to normalize the company."

They continued, "The company is withdrawing the previously announced business closure effective November 30 and will normalize operations based on a streamlined structure and efficiency."

The management lamented, "While deeply acknowledging the sharp criticism of management failure by the owner, we cannot help but recognize the reality of over 30 billion KRW in accumulated losses over the past four years due to declining dairy consumption, rising raw material costs, and fuel prices, with an additional loss of over 18 billion KRW expected this year alone."

They also said, "We apologize once again to consumers who have loved and supported our products for showing an unfavorable image. We kindly ask you to withdraw your resentment towards the company and continue to watch over us with interest and affection."

The Purmil labor union held a rally on the 26th in front of the headquarters in Yeongdeungpo-gu, Seoul, protesting the company's unilateral business closure and dismissal notice. The photo shows the Purmil headquarters on that day. Photo by Kim Hyun-min kimhyun81@

Previously, Purmil's management and labor union had conflicts due to differences over the business closure. Negotiations between CEO Shin Dong-hwan and the union took place on the 24th and 31st of last month and the 4th of this month but failed to reach a conclusion. However, during the 4th negotiation on the 8th, the company accepted the union's proposal for a 30% restructuring plan, marking the beginning of a resolution. Ultimately, the company accepted the plan and decided to maintain the business instead of reducing personnel.

Procedures for this have also begun. The Purmil Labor Union announced that from today until the 14th, they will accept voluntary retirement applications from employees with more than three years of service over five days. Employees with ten years of service will receive five months' average monthly wages, those with 25 years of service will receive six months, and those with more than 25 years will receive seven months. Statutory severance pay and unused annual leave allowances are separately determined. The voluntary retirement date is set for the 30th of this month, originally announced as the business closure date by Purmil. If the number of voluntary retirement applicants falls short of 30%, the company will implement recommended layoffs. Those subject to recommended layoffs will receive a lump sum payment equivalent to four months' wages.

Earlier, Purmil decided to close its business on the 30th of this month, citing an inability to endure years of continued losses. On the 17th of last month, Purmil sent emails notifying all 400 employees of the business closure and layoffs.

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