KT Restructuring Agreement Reached Between Labor and Management: "Increased Transfer Support Allowance and Maintenance of Welfare Benefits"

KT labor and management have agreed to improve the conditions for employee transfers by increasing the support fund for transferees and maintaining welfare benefits.

Kim Young-seop, CEO of KT, attended the 'AICT Business Strategy Press Conference' held on the 10th at Novotel Ambassador Dongdaemun in Jung-gu, Seoul, and responded to reporters' questions about the background of cooperation with Microsoft, future plans, and business strategies toward becoming an 'AICT Company.' Photo by Jo Yong-jun jun21@

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According to the telecommunications industry on the 17th, Kim In-gwan, chairman of the KT labor union, met with CEO Kim Young-seop the day before and conveyed that workers should be treated so that they can freely choose to transfer. It is understood that labor and management reached an agreement in the early hours of that day.

According to the agreement, the plan to provide transferees to subsidiaries with more than 10 years of service 70% of the base salary received from KT and 20% of the job transfer support fund will be revised to increase the job transfer support fund to 30%.

Welfare benefits for subsidiary transferees will also be maintained under conditions similar to those at KT headquarters, and an agreement was reached to extend the guaranteed employment period for contract workers from the existing 2 years to 3 years.

A KT labor union official said, "Labor-management consultations were conducted with improvements in conservative aspects and contract workers."

In response to this agreement, the second labor union, KT Sae Nojo, stated, "The restructuring plan, which employees and labor groups strongly opposed and which the National Assembly including the Democratic Party warned must be abolished, has ultimately passed under the pretext of labor-management agreement," and "CEO Kim and the management and board of directors must take full responsibility for making a decision that carries a high risk of repeating the Ahyeon fire incident (which occurred in 2018)."

Earlier, on the morning of the 15th, KT held a board meeting and approved the establishment of KT OSP and KT P&M (tentative name) through 100% cash investment in shares.

They decided to restructure 5,700 field personnel, employing 3,400 of them at KT OSP and 380 at KT P&M. This aims to improve management efficiency for the transition to AICT (AI+ICT).

The plan also includes providing a lump-sum payment at the highest level ever for those who opt for special voluntary retirement.

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