Doosan Group has decided to implement a wage peak system starting next year, making it the first business group to do so with all of its affiliates including workplaces with fewer than 300 workers.
While the Group has introduced wage peak systems in its major affiliates such as Doosan Heavy Industries & Construction, Doosan Infracore, Doosan Engineering & Construction, Doosan Engine, Doosan DST, Doosan Capital, and Doosan Tower, some business groups under Doosan Corporation (a holding company) have been reluctant to adopt wage peak systems until now, and have agreed to sign on.
Doosan Group has mentioned that personnel in affiliates with fewer than 300 workers also agreed to adopt a wage peak system, which will be implemented in all of the Group’s workplaces from 1 January 2016.
Doosan Infracore began putting a wage peak system into place last year upon agreement of both labor and management. Instead of simply extending retirement age to 60, wages will be reduced by 20% at age 58, and by 30% at age 59 and 60. With the reduced labor costs, the company hired 358 new employees this year, which is more than twice the number of new hires last year.
Retirement at age 60 is also being introduced along with a wage peak system in all of the Group’s affiliates.
Together with a wage peak system, Doosan Heavy Industries & Construction extended the retirement age of technical and office workers last year, from 58 to 60, and from 56 to 60, respectively.