Homeplus Employees Face Pay Delays as Company Implements Recovery Measures

Homeplus management and labor unions have agreed to implement stringent measures to delay salary payments and reduce certain employee benefits as part of a recovery plan aimed at normalizing operations.

On July 31, Homeplus announced that its two major labor unions, the Homeplus Mart Union and the Korean Confederation of Trade Unions Homeplus General 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 recovery plan.

Previously, on July 27, the labor and management held a meeting to discuss adjustments to the timing and method of certain employee benefits to alleviate the company's liquidity burden and secure funds for operational normalization.

Starting in September, the regular bonuses that are typically paid 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 provided to employees of closed stores upon resignation, will no longer be issued. Additionally, transition bonuses for employees reassigned from closed stores will be paid in installments over six months.

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

A Homeplus representative stated, "Despite the company facing extremely difficult circumstances, both labor unions and employees have made significant decisions to support 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."