"Store Sale Labor-Management Agreement"... Will Homeplus's Rehabilitation Plan Face Variables?

Signing Ceremony Scheduled for the Afternoon of the 13th
Tentative Agreement Vote: 96.4% Union Approval
Consultative Body for Store Sales Included Among Key Provisions
Potential for Labor-Management Disagreements During Rehabilitation Planning

Homeplus is approaching the first wage negotiation agreement since entering corporate rehabilitation proceedings. Among the tentative agreements previously reached between labor and management, the inclusion of a clause to form a consultative body when selling stores has drawn attention as a potential variable in future rehabilitation plans. Members have emphasized the rapid increase in new union members since the start of the rehabilitation process and expressed their intention to raise their voices for job security and improved working conditions.

According to related industry sources on the 12th, the Homeplus labor and management are scheduled to hold a signing ceremony for the 2025 wage negotiation agreement on the afternoon of the 13th. The Mart Industry Labor Union Homeplus Branch conducted a vote on the tentative wage agreement from the 9th to the 11th among 2,267 union members, with a total of 2,230 participating and 2,153 (96.4%) voting in favor. Unless there are unexpected developments, the tentative agreement is expected to be finalized at the signing ceremony.

Earlier, Homeplus labor and management began wage negotiations in October last year and reached a tentative agreement on the 24th of last month. The tentative agreement includes ▲an average wage increase of 1.2% ▲the establishment of an on-site experience allowance (starting at 2,500 KRW with an additional 2,500 KRW added annually) ▲improvements to the criteria for title changes ▲and the formation of a consultative body in case of store sales.

Among these, the clause on forming a consultative body when selling stores was formalized separately from the current rehabilitation proceedings, raising issues over last year when MBK Partners, the private equity fund (PEF) owner of Homeplus, attempted to unilaterally sell the Express business division without consulting the labor union. There is a possibility that the union may oppose plans such as closing some stores as Homeplus proceeds with rehabilitation.

The Mart Industry Labor Union Homeplus Branch stated, "Since MBK Partners announced corporate rehabilitation, concerns about restructuring and store closures have been steadily raised," adding, "In response, the labor union is further strengthening its stance to protect union members' rights based on solidarity." However, Homeplus stated, "Except for some stores that were planned to be closed before the start of rehabilitation proceedings, there are no additional stores under consideration for sale," and "Currently, we are focusing on prioritizing debt repayment with trade receivables."

Homeplus Union 2025 Wage Agreement Tentative Agreement Vote Results. Provided by Mart Industry Labor Union Homeplus Branch

The Homeplus union intends to demonstrate united strength in negotiations with management, citing the record-high union member turnout rate of 98.4% and the high approval rate for the tentative agreement. According to the union, the number of new union members, which was previously about one per day, has increased to more than ten per day since the rehabilitation proceedings began on the 4th. An Soo-yong, chairman of the Mart Industry Labor Union Homeplus Branch, emphasized, "This voting result expresses the members' determination not to be swayed by the management's unilateral decisions and to actively protect their workplace," adding, "We will continue to fight for job security and improved labor conditions."

Meanwhile, Homeplus plans to continue its discount promotions by holding the 'Encore! Homeplun is BACK' event for one week starting on the 13th, following the solo super sale 'Homeplun is BACK' commemorating its 28th anniversary held from the 28th of last month until today. Homeplus emphasized, "There are rumors that the event was suddenly extended to secure cash, but this is not true," adding, "Since implementing Homeplun in 2023, we have received positive customer responses to products and seasonal items during the event period, so we have additionally held the encore Homeplun event."

Earlier, Homeplus received court approval twice on the 7th and 11th to disburse a total of 458.4 billion KRW, including 345.7 billion KRW for goods and service payments from December last year to last month and 112.7 billion KRW for tenant settlements from January to February this year, and has disbursed more than 100 billion KRW so far.

Homeplus expects that with normal business activities and large-scale discount events, 300 billion KRW in cash will flow in by the end of this month, enabling smooth repayment of trade receivables such as supplier payments and tenant settlement costs. A Homeplus official stated, "Although payments have been made sequentially since the start of rehabilitation proceedings, concerns remain among suppliers and landlords who have not yet received payments, and some are requesting early repayment due to anxiety even for items whose due dates have not yet arrived," adding, "We plan to establish a detailed payment plan this week, communicate it to each supplier, and minimize anxiety by providing detailed information on the payment schedule."

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