By Kim Tae-jong
E-mart, the nation’s biggest discount chain, announced Monday it will add about 10,000 temporary workers formerly dispatched from its subcontractors to its regular payroll from next month.
The move comes after the Ministry of Employment and Labor last month concluded that E-mart had violated the Labor Law by illegally using employees of subcontractors to avoid directly hiring them.
The ministry ordered the company to correct the illegal practice or face 19.78 billion won in fines every month.
The labor ministry conducted a large-scale investigation including raids on the firm’s headquarters and branches early last month.
Under the decision, the 10,000 workers at 146 branches nationwide will receive the same benefits as permanent workers from April 1.
They can work until the maximum age limit and receive incentives and bonuses as well as other welfare support, with their income raised by 27 percent on average, the company said.
“We decided to directly hire employees from subcontractors as our permanent workers, as the issue of temporary workers has drawn much attention,” an official from the firm said.
E-mart estimated that an extra 60 billion won will be required for the job status conversion, but said the investment is worthwhile.
“We made the decision as an effort to share growth with temporary workers and reflect our growing corporate social responsibility,” said E-mart CEO Hur Inn-chul in a statement. “We will keep investing more and creating more jobs.”
The job status conversion is the largest ever.
This drew immediate attention as a move to comply with President Park Geun-hye’s election pledges to support temporary workers and similar decisions are expected to follow.
Park has emphasized the welfare of the underprivileged including temporary workers and also charged big firms with taking part in creating more jobs.
The emphasis comes as a large number of temporary workers face discriminatory treatment at their workplaces.
According to city government figures, more than half of temporary workers work for less than a year and are paid less than half of what permanent workers earn. Less than half such irregular workers receive benefits such as pensions, health insurance or overtime pay.
Labor Minister nominee Phang Ha-nam said Monday that his ministry will overhaul a system that irrationally discriminates against temporary workers.
"I will make sure that employers will not abuse temporary workers or irrationally discriminate against them," he said in his parliamentary confirmation hearing.
He also noted he will instruct firms to directly hire their illegally employed workers.
Under the new Park administration, Hanwha Group granted a total of 2,043 temporary workers permanent status from March 1, as the first group among the top 10 conglomerates to make such as a large-scale conversion.
Market insiders believe the Hanwha move was an effort to win the favor of the incoming government.