Homeplus Employees Tighten Their Belts as Restructuring Efforts Intensify

Homeplus management and labor unions have agreed to implement stringent measures to delay salary payments and reduce certain employee benefits as part of efforts to normalize operations and facilitate corporate restructuring.

On July 31, Homeplus announced that its two labor unions, the Homeplus Mart Union and the Korean Confederation of Trade Unions Homeplus General Labor Union, along with the employee representative body Hanmaeum Council, have committed to working together to expedite the normalization of operations and ensure the smooth execution of the ongoing restructuring plan.

Earlier, on July 27, the labor and management held a meeting to discuss alleviating the company's liquidity burden and securing funds for operational normalization. They agreed to temporarily adjust the timing and method of payments for certain employee benefits.

Specifically, the regular bonuses scheduled for payment in September will be distributed in six equal installments. Salaries will also be delayed by two months until March of next year, meaning that July salaries will be paid in September.

The employment stability payment, which was previously up to 12 months of base salary for employees at closed stores, will no longer be provided. Additionally, the transition compensation for employees reassigned from closed stores will be paid in six installments.

Homeplus plans to prioritize the use of 200 billion won in emergency operating funds for stabilizing product supply, normalizing operations, employee salaries, and essential operating costs.

A Homeplus official stated, "Despite the company being in a very difficult situation, both labor unions and employees have made tough decisions for normalization. We will focus all our efforts on restoring operational stability and corporate value to ensure that employees' sacrifices and cooperation are not in vain."