GS Group to transition 2,500 contract workers

GS Group, a Korean energy and retail conglomerate, said yesterday it will convert 2,500 contract workers into regular employees, following the lead of CJ Group, Hanwha Group, E-Mart of Shinsegae Group and SK Group.

GS plans to complete the transition of 2,150 cashiers and people working on displays, and 350 call center employees at GS Shop’s subsidiary GS Teleservice by the end of the year.

Temporary workers subject to transition account for 51 percent of the 4,900 contract workers in GS Group.

The conglomerate emphasized the transition will significantly contribute to employment security of women and/or high school graduates; 89 percent are female and 85 percent high school graduates.

As a result, the proportion of irregular employees among the total workforce in the GS Group will drop from 19.3 percent to 9.5 percent, compared to 33.3 percent overall for domestic companies, according to Statistics Korea at the end of last year.

The industry observers say that GS, as the chair company of the Federation of Korean Industries, actively responded to demands of the Park Geun-hye government that large enterprises be socially responsible.

Once contract workers become regular employees, they will receive benefits such as health screening, cash gifts and guaranteed employment.

GS Group said it will only hire regular employees in the future and steadily increase the number of regular employees at other affiliates.

This year the conglomerate plans to recruit 3,000 new employees, including 250 high school graduates.

“We expect that the latest measure will boost commitment of nonregular employees and elevate work performance through motivation. GS Group and its affiliates will also be able to provide a higher level of customer service by preventing frequent turnover of employees and utilizing their accumulated know-how,” said a GS Group official.

SK Group earlier announced it will convert 5,800 nonregular workers to regular employees by the end of the year.

Hanwha Group finished converting 2,043 irregular workers among in March and E-Mart, the discount arm of the retail giant Shinsegae Group, converted 9,100 workers in March.

CJ Group last year hired 600 temporary workers at its theater and restaurant affiliates as regular employees.

By Kim Jung-yoon [kjy@joongang.co.kr]