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Underperforming Workers Can Now Be Dismissed, IBK Labor-Management Announces

By February 5, 2016 at 6:58 am
Korean workers (Photo : Chung Sung-Jun/Getty Images)

Employees who are found performing below the standards of what a company expects can now be dismissed, as agreed by the labor and management at IBK Investment & Securities.

Now, there are two ways to fire underperforming employees: first is to lay them off and another one is through punishment dismissal, The Korea Economic Daily reports.

However, according to the new rule, full-time private banking employees who are found to be performing under 40 percent of the break-even point fixed by the company, will have to undergo a 30-month improvement program. This is also applies to employees who are included in the bottom 5 percent of the performance record.

Employees who do not achieve expectations at each stage of the program will either be dismissed or be put on hold for three months.

IBK Investment & Securities stated on Feb. 3 that their labor-management board finalized the decision late last year. The agreement will generally change employment dismissal and will take effect early this year.

The case has been controversial after the Federation of Korean Trade Unions announced last month of their withdrawal from the tripartite agreement. In a report by Business Korea, local employees were dismayed over the announcement as it may trigger possible employment injustices.

"The two guidelines and the five labor bills should have been completed by the end of last year and put into practice this year, but we are already late," said Labor Minister Lee Ki-kweon.

"We hope that the Federation of Korean Trade Unions would return to the table, but even if they do not, we plan to continue with our preparations by collecting opinions in a variety of ways."

Saenuri Party also made efforts to pursue the five labor bills, but the opposition was not faltered of their protests. The latter reportedly urged the ruling party to resolve the issue with a partial passage between the labor community and the opposition.

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