The Korean discount retail chain Homeplus is to convert the status of its open-term workers with 12 years or more service to regular employment.
On 1 February 2018, Homeplus Stores and its trade union agreed on the related employment contract, adopting a resolution to establish cooperative relations between labor and management to overcome the crisis in the retail market.
Homeplus is composed of 2 corporate bodies, the original Homeplus and Homeplus Stores, which acquired Homever in 2008. Collective and wage bargaining for Homeplus were concluded on 11 January and Homeplus Stores entered into an agreement on 1 February, concluding bargaining for all Homeplus workers.
Labor and management at Homeplus Stores explained that they had concluded bargaining without dispute for 2 consecutive years, sharing the view that labor and management must work together if they hope to get through the crisis due to regulatory and market changes. They also agreed to revitalize the company with the new CEO together.
According to the agreement, open-term workers with 12 years or more in service period (beginning 31 December 2005 or earlier) will become regular employees from 1 July 2018. Homeplus is the first Korean retail chain to give its open-term workers regular employment. This conversion is a step forward from existing policy which involves converting non-regular workers working 16 months or more to open-term contracts.