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The Korea Herald
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THE INVESTOR
March 29, 2024

Retail & Consumer

SK Broadband to turn 5,189 temporary workers into regular staff

  • PUBLISHED :May 23, 2017 - 17:41
  • UPDATED :May 23, 2017 - 17:41
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[THE INVESTOR] Korean businesses are moving to convert contract workers into full-time regular workers, with SK Broadband becoming the first private firm to join President Moon Jae-in’s initiative to reduce the number of temporary employees in the country.

On May 22, Korea’s top Internet provider owned by SK Telecom said it will revise the contracts of 5,189 temporary workers handling installation and maintenance services into permanent ones. The workers belong to subcontractors working for SK Broadband, which will set up a new subsidiary in June and begin hiring them. 




The decision came just a week after President Moon vowed to eliminate contract employment in the public sector, as temporary workers usually are disadvantaged in terms of wages and benefits such as insurance coverage.
SK Broadband’s decision is likely to have a ripple effect, according to industry sources. CJ HelloVision, a cable TV operator under CJ Group, had a meeting on May 22, to review its current employment practices. LG UPlus will also review the feasibility of changing the contract status for 2,500 temporary workers.

But these schemes may also spur some conflict as the subcontractors are facing a shut down since they would be losing their employees. SK Broadband said it would provide them compensation, but the subcontractors are vowing to take legal action.

With Me, a convenient store chain operated by retail giant E-mart, also announced plans on May 22 to convert some of its store workers to regular workers.

In other sectors, such as the banking industry which has a high portion of contract workers, is mulling similar measures. The Industrial Bank of Korea is considering turning 3,000 contract-based staff into full-time workers while Citibank Korea said it will convert about 300 open-ended contract tellers and clerical employees into regular staff this year.

By Park Ga-young (gypark@heraldcorp.com)

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