Allianz Life Korea concluded a collective agreement with its union on 21 September. The collective agreement includes a clause about withdrawing the layoff procedures started on 6 September, and a 3-year guarantee of employment under the condition that the trade union does not carry out strikes or other forms of industrial action for 3 years.
In April, Beijing-based Anbang Insurance Group (Anbang Insurance) acquired Allianz Life Korea and asked for a KRW 30 billion (US$ 27 million) reduction in labor costs. Since then, Allianz Life Korea dismissed 200 workers and began procedures for additional layoffs.
The management and union of Allianz Life Korea also adjusted 3 other clauses regarding a progressive system for severance pay, annual paid leave and menstrual leave. The progressive system has been changed to a flat rate, and paid leaves have been adjusted as compensation without leave days.
Allianz Life Korea said that “management deeply appreciates our employees and the union for their decision to share in the sacrifice for better business, as the company strives to become more productive and sustainable.”