Koreans Take Pay Cuts to Stop Layoffs
Shinchang Electrics Co. offered union leaders a proposal that would reduce wages at the auto-parts company by 20% in exchange for no layoffs among its 810 workers this year. Eight days later, the union agreed.
The deal is one sign of the unusual way South Korea is grappling with the global economic crisis. Across the country, executives, salaried employees and hourly workers at companies from banks to shipbuilders are joining to slash wages and other costs with the goal of avoiding layoffs.
” We have to go through this together. We are colleagues and friends,” says Shim Ho-yong, a seven-year employee who molds ignition components for Shinchang. “If one disappears, it’s awkward and uncomfortable.”
[ Continue reading original article at The Wall Street Journal ]