Korea Labor Foundation selected excellent enterprises consolidating the future with labor-management culture of co-existent cooperation

□ 2017 Labor-Management Culture Grand Prize, which was hosted by the Ministry of Employment and Labor(MOEL) and organized by Korea Labor Foundation, selected Rayence Co. Ltd. and KOMSCO (Korea Minting, Security Printing & ID Card Operating Corporation) as its Presidential Prize winners.

○ For the Prime Minister Prize, three companies including CJ Lion, LOTTE.COM, SEOJIN Industrial are selected.

○ For the Employment and Labor Minister Prize, four companies including BMS Korea, DY Auto, KT Service Northern Office, Korea Housing & Urban Guarantee Corporation are selected.

□ This year, nine enterprises including three SMEs, four large firms and two public institutions were selected as prize awardees.

□ Reyence Co. Ltd., having TFT, a core part for X-ray system and CMOS detector* technologies, is one of the biggest enterprises in Korea specializing in detector area. It is an SME and its labor and management make a happy workplace together with people-centered management philosophy having a motto, ‘All things have their roots and people is the very root“.

   * A core part of X-ray device which converts x-ray image into digital image information

○  Critical situation came upon the company in January 2015 when H company which had provided panels unilaterally informed that it would discontinue supply and retreat form domestic business. The labor and management devoted themselves to development of its own panel to overcome the crisis and succeeded in product development in July 2015, one and half years earlier than expected. Afterwards, the company leaped forward once again and became listed in the KOSDAQ in April, 2016.

○  A variety of communication spaces such as ‘Weareday’, DID screen, VKS(Vatch Knowledge management System), ‘Darakbang’, Wikipedia, etc. are arranged to listen to voices from employees and share information.

    * Weareday: Monthly sharing of management performance of all the employees, dissipation of in-company news

    * DID Screen: Reveal of information in regard to product, business culture, details of activities, etc. on the screen installed within the company

    * VKS: Information sharing space at the level of the whole company

    * Darakbang: Channel for grievance counselling

    * Wikipedia: Window for proposal reception

○ The company goes extra miles for communication with employees’ families holding various events* for them. In particular, Ewooi Daycare Center** having the highest level of facilities in Korea is one of sources of pride.

    * ‘What are you doing, mom and dad?’, ‘Future hope drawing contest for employees’ children’, ‘Seeing a play with mom’

    ** Opened in March, 2016, 1,443㎡ of area for use, and air, noise and light management system of the level of hospital intensive care unit

○  It also introduced a system of recruitment without three elements (picture, formal qualifications, company-visiting interview) at the regular open recruitment in the 1st half of this year in order to recruit talents based upon only their capabilities instead of apparent qualifications.

□ KOMSCO (Korea Minting, Security Printing & ID Card Operating Corporation) went through severe labor-management confrontation like a long-term strike, lockout, imprisonment of union leader, etc. in the wake of merger and abolition of minting and printing corporations and restructuring in 90s. However, it nurtured and developed culture of understanding and respect between the labor and management via various labor-management communication systems* from early 2000s and established more mature labor-management culture by re-establishing and declaring the vision for labor-management relations in 2014 and concluding a joint MOU for practising integrity between the labor and management in 2016, etc. It posted the record of non-dispute for 18 years in a row.

    *   KOMSCO sympathy court, CEO-union leader tea-time for labor-management cooperation (every Friday), CEO’s field visit, labor-management joint professional education, explanatory meeting touring all the parts of the company organized by executives, volunteering activities jointly organized by the labor and management, etc.

○  CEO takes part in the labor-management council* which is held all the year round and explain management situation, and resolutions by the council are made public. The company listens to opinions of employees and reflect them as many as possible for management innovation by holding ‘KOMSCO Hope Management Debate’ in which about 100 executives and employees participated in 2015 and coming up with solutions for management issues through in-depth discussion between the labor and management, etc.

    * CEO participated in the labor-management council 100% which was held 24 times in 2015 and 22 times in 2016.

○ Detailed consideration for the underprivileged such as recruitment target system for gender equality*, installment of entrance/exit door exclusively for the disabled and design of workplace without threshold, conversion of non-regular workers into regular status**, etc. is particularly conspicuous.

    * A 30% standard is appled when employing five or more people by occupation.

    ** 156 workers were converted into regular status from 2014 to 2016.

○ The company operated quality circle activity and mentorship system for pass-down of skills in which all the workers participate for productivity and quality improvement, and it was awarded the President Prize at the National Contest for Quality Circle for 14 years in a row by 2016.

○ A variety of systems such as workplace daycare center, automatic childcare leave system, intensive leave system, flexitime system, education for expansion of work-life balance, promotion of leaving the office on time*, etc. are being operated so as to provide employees with life with rest.

    * Leaving the office on time on Family Day, every Wednesday and on Friendship Day, every Friday.

□ CJ Lions Co. Ltd. was separated from CJ Cheiljedang in December, 2004 and became a member of Lion Corporation, household item company based in Japan. At the time of launch, there had been a management crisis due to slump in sales, drop in profits, etc., but it is now an SME which has overcome the crisis and is growing based upon people-centered management and family community-oriented labor-management culture.

○ Culture has taken root in which the labor and management trust and cooperate with each other as the labor and management discuss and decide upon pending issues such as wage increase, standards for profit distribution by means of ‘Life & Culture Council’ in which both the labor and management participate. The company gives out 30~50% of net profits in the form of management performance pay* to workers after discussion at the Life & Culture Council since 2012.

    * Management performance pay in 2016: KRW 3.25 billion, 21% of the total wage

○ It supports work-life balance through family-centered welfare systems such as operation of a camp for workers’ children, adoption of 4-month maternity leave, staggered office hour at the time of infant care, cultural events inviting family members, operation of family day, etc.

○ Even though being an SME, it has organized a team exclusively for CSR and persistently carries out various social contribution activities such as Executives’ Sharing Day, school for brushing the teeth for elementary schoolchidren, support of life items for the underprivileged, supportive activities for environment mentoring, etc.

□ LOTTE.COM Co. Ltd. is a company which started an online shopping mall for the first time in Korea in January 2000. It continued to grow to achieve membership of 20 million, 1 million visitors per day and annual sales worth KRW 1500 billion, based upon CEO’s philosophy of ‘Sustainable and growing business competitiveness comes out from employees’ happiness’ and labor-management culture of ‘respect and consideration’.

○ Five labor-management joint bodies were established to raise the level of worker satisfaction and listen to various kinds of voice in the field: labor-management council, council for employee participation, creativity & dream team, diversity committee, and sustainable management committee.

○ Recruitment so-called ‘Lotte Spectacle Audition’ is being implemented since 2016 in order to select talents based upon competence rather than formal qualifications. It refers to a recruitment model of LOTTE.COM which tackles indiscriminate accumulation of formal qualifications.

○ Various leave systems are introduced and operated so that employees can enjoy life with rest, culture for free use of leaves is in place and the rate of use of annual leaves is expected to reach 70%.

    * Kinds of leave: Donation leave, sabbatical leave, study leave, congratulatory leave for 100th day after joining the company, half of half day leave

    * Leave promoting bonus: In case 25% of annual leaves are used per quarter, vacation bonus shall be provided (KRW 160 million a year)

    * Rate of use of leaves: 60% in 2014→ 64% in 2016 → 70% in 2017 (estimation)

○ ChaLotte Volunteer Group, which is organized jointly by the labor and management, carries out various social contribution activities* and the company exerts utmost effort for co-existent cooperation with cooperative companies.**

    * Support for single-parent families, event for baby care, volunteering for abandoned animals, volunteering for Kimchi sharing, Namsan Mt. afforestation, etc.

    ** Academy for joint growth with cooperative companies, conclusion of an MOU with distribution centers of SMEs, invitation events for best partners.

□ SEOJIN Industrial Co. Ltd. concluded the wage agreement of 2017 without negotiation based upon trust between the labor and management. It boasts cooperative labor-management culture as there has been no dispute for 38 years since 1978 when its labor union was established.

○ The company went through painful time when it was sold to TOWER company of the USA at the time of IMF economic crisis, but the labor and management jointly secured its survival through communication and cooperation and protected the company facing difficult situation of the foreign capital. In 2006 when the company was faced with a managerial crisis due to steep decrease in sales, emergency management system and self-rescue measures* had been arranged to overcome the crisis through labor-management agreement, and it was finally re-incorporated to SECO, its original mother company, in 2013.

    * Reduction in full-time union officers, transfer of factory logistics, promotion for use of annual leaves, reform of personnel structure, etc.

○ The labor and management agreed to introduce daytime continuing double-shift, My Machine activity, daytime factory manager system, etc. and started to implement them since 2016 for reduction of working hours and productivity improvement.

    * My Machine activity: All the employees perform maintenance work for their own equipment every Wednesday → Maximization of production efficiency

    * Daytime factory manager system: A group of two (one field manager + one office worker) is organized every week to act as factory manager and inspect the field.

○  The company extended the number of recruitments up to 73 last year to fulfill its social responsibility of job creation and hired nine workers as regular workers from in-company subcontracting companies at Kyungju factory this year.

□  An enterprise which received a prize at the Labor-Management Culture Grand Prize is to be given benefits such as exemption of regular labor inspection for three years, postponement of tax investigation (one or two years only for exemplary taxpayers), special interest rate to be applied for bank loans, extra points to be given for credit rating, etc.

□  This year, 25 out of 171 enterprises nominated as an excellent enterprise in terms of labor-management culture for the past three years from 2015 to 2017 applied for the Labor-Management Grand Prize.

○  The review committee composed of labor-management relations experts implemented field inspection, contest for case presentation, etc. for thirteen enterprises which passed the document examination, and eventually nine enterprises were selected.