Doosan to move contract workers to salaried roles

Doosan Corporation, the holding company of conglomerate Doosan Group, and its construction equipment subsidiary Doosan Infracore decided Monday to move all of its contract workers into salaried positions.

The move comes just days before a scheduled meeting between heads of major Korean conglomerates and President Moon Jae-in, a progressive, on Thursday.

For subcontracted workers who are technically employed by suppliers, the group will give 1.2 million won ($1,080) in additional annual pay along with improved benefits to lessen the gap with salaried workers.

According to Doosan, the two companies have hired roughly 450 so-called irregular workers, a term that refers to contract workers and employees dispatched from another company. While contract workers will be converted directly to permanent positions as soon as possible, dispatched workers will be brought on as new hires.

“Our decision was made to meet the demands of our time where job security has become an important social agenda,” a company spokesperson said.

Subcontracted workers employed by suppliers will receive an extra 100,000 won per month. These suppliers are highly dependent on business with the two Doosan companies.

The suppliers’ workers will receive more perks as well. For those in business with Doosan Corporation, workers will receive gifts during the nation’s two biggest holidays, Seollal and Chuseok, as well as free health checkups and funeral service.

For those in business with Doosan Infracore, financial support for children’s school expenses with a 2 million won annual cap and free usage of Doosan-operated nurseries will be granted.

According to industry sources, Doosan Heavy Industries and Construction is also reviewing plans to convert its irregular workforce to regular, though the process is expected to take some time.

President Moon ran on a campaign of mutual growth between conglomerates and their contractors, and major companies like Samsung Electronics and Hyundai Motor have been coming up with support funds to back supplier companies.

BY KIM JEE-HEE [kim.jeehee@joongang.co.kr]