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Biz News Korea(Eng)
Hanjin Shipping starts axing workforce ahead of asset sales
- Collected
- 2016.10.21
- Distributed
- 2016.10.24
- Source
- Go Direct
The union of the ill-fated shipper that had been the world’s seventh largest before it was placed under court receivership was told by the management of its plan to give out redundancy notice to 350 workers, or half of the 650-strong ground workforce except for 300 involved in the Far East-North American route which the court hopes to sell.
The shipper’s chief executive Seok Tae-soo will start discussing layoff outline with unionized mariners. Hanjin has over 720 workers on board.
Under the local labor law, the management can start layoffs 20 days after it began talks with the union. Hanjin Shipping workers would be losing jobs from early next month.
The company plans to complete streamlining by early December. But the union won’t likely go easily as workers have been protesting against layoffs ahead of sales of the assets.
The Seoul Central District Court last Friday put up public notice inviting bidders for Hanjin Shipping’s interests in the Far East-North American sea route and port and other logistics service and infrastructure involved, seven overseas units, five containerships, and concerning workforce.
Sales however may not go as planned as one of the company’s containerships became arrested in Shanghai.
By Kim Jung-hwan
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]