E-Mart upgrades another batch of employees to salaried status

E-Mart, the discount arm of retail giant Shinsegae Group, said yesterday it will make 1,821 salespeople its fashion sector regular employees as of May 1.

The move comes after the retailer announced it would upgrade 10,000 contract workers who stock products in stores to permanent employees early this month.

The Ministry of Employment and Labor said last month that E-Mart was in violation of labor law and ordered the retailer to directly hire temporary workers dispatched from its subcontractors or pay a fine of 19.7 billion won ($17.7 million).

The ministry found that nearly 2,000 people stocking displays were not regular employees at E-Mart in its investigation of 23 branches earlier this year.

According to the ministry, under the current labor law, people stocking displays or who have direct contact with customers, such as cashiers, must be regular employees, not hired by subcontractors.

The 1,821 salespeople in the fashion sector worked for independent operators that signed arrangements with E-Mart. They were hired as contract sales persons to improve customer service and strengthen the expertise in selling products for E-Mart’s specialized fashion product lines