Nearly 5,000 Homeplus employees left the company in the first half of this year alone, as the cash-strapped retailer teeters on the edge of bankruptcy. With a court having ordered the termination of its rehabilitation proceedings, that number is expected to climb further — yet only one in five departing workers has found a new job.
Data submitted to People Power Party lawmaker Jo Ji-yeon by the Ministry of Employment and Labor showed that 4,995 Homeplus workers lost their employment insurance coverage between January and June. Monthly figures stood at 842 in January, 960 in February, 801 in March and 809 in April. The number dipped to 528 in May before surging to a monthly record of 1,055 in June.
Severance pay has also become a problem. Of the workers who left in June, 120 have yet to receive their severance payments, with the total in arrears reaching 860 million won ($572,000). Under the Labor Standards Act, employers must pay severance within 14 days of an employee's departure.
Homeplus operates a retirement benefit scheme and has been setting aside severance funds, but the reserves fall short of the legally required minimum funding ratio of 100 percent. The company recently reached an agreement with departing workers to defer severance payments by up to one month from their departure date, citing a cash crunch.
Reemployment prospects have been equally bleak. The government has been offering employment services — including the National Employment Support Program, vocational training and psychological counseling — to Homeplus workers and employees of affiliated suppliers, but only 1,130 of the 4,995 workers who left in the first half of the year have found new jobs. Another 2,281 have been receiving unemployment benefits.
"A company's management crisis must not translate into financial hardship for its workers," Jo said, urging the government to "take active, substantive steps to support and follow up with workers who have suffered harm, including unpaid severance."
The government has also begun preparing follow-up measures. On Friday, July 3, Vice Finance Minister Lee Hyeong-il chaired a task force meeting of relevant agencies to discuss support plans for workers and partner companies affected by the Homeplus situation.
The government plans to provide monthly job-seeking allowances of around 600,000 to 1 million won to low-income job seekers so they can focus on their search. For vocational training living expenses, workers not receiving unemployment benefits and earning below 80 percent of the median income will be eligible for loans of up to 10 million won at an annual interest rate of 1.0 percent.
The Ministry of Employment and Labor said it has been strengthening coordination with relevant agencies and regional offices nationwide since the court's decision to terminate Homeplus's rehabilitation proceedings, closely monitoring wage arrears and employment changes. The ministry added that it plans to actively guide the company toward prompt settlement of unpaid wages and to minimize harm to workers through measures including advance payment support.
Meanwhile, Homeplus has until Wednesday, July 17, to file an immediate appeal against the court's termination ruling — within 14 days of the decision. If the company secures funding and files the appeal in time, the court could reconsider its ruling. If Homeplus does not appeal, the termination of its rehabilitation proceedings will be finalized.
mp1256@heraldcorp.com
