Samsung Electronics announces plans to increase flexibility of working hours

Posted on : 2018-05-30 16:28 KST Modified on : 2019-10-19 20:29 KST
New system of 52-hour work week to be phased in with Labor Standards Act amendment

Samsung Electronics announced plans on May 29 for the introduction of systems including discretionary work and flexible working hours ahead of the introduction of the 52-hour working week, which looms just over a month ahead. Most companies were taking steps toward introducing greater flexibility to their current working hours, with some announcing plans for additional production position hiring.

The 52-hour working week is scheduled to go into effect in July following the National Assembly’s passage of a Labor Standards Act amendment in late February. It is to be phased in starting with workplaces with 300 or more employees.

Samsung Electronics is introducing an “elective working hour” system for clerical positions, expanding its currently weekly “autonomous arrival and departure time” system to monthly units. Under this system, employees work a minimum of 20 hours per week each month, with the remainder of working hours left to the workers’ discretion, as long as average working hours per week do not exceed 40.

For production positions, it is introducing a three-month flexible working hour system in anticipation of seasonal demand, including the air conditioning season in the summer. Operating on a three-month basis, it differs from the clerical position approach in having work schedules decided by agreement between workers and their employers. Average working hours for the three-month period are not allowed to exceed 40 per week, and workers must not go over 64 hours in any given week (52 hours base + 12 hours overtime) or 12 hours on a given day.

Samsung Electronics and LG Electronics are currently asking the government to expand the flexible working hour calculation period from six months to one year. The system falls within the framework of the law, but is more beneficial to employers than workers. For that reason, the Ministry of Employment and Labor (MOEL) currently excludes it from subsidies to companies aimed at improving the environment for work-life balance.

For new product development and research positions, Samsung Electronics is introducing a discretionary work system that grants complete discretion in terms of means of job performance and working hour management. Working hours and other conditions are to be agreed upon by employers and worker representatives. In addition to research positions, permissible areas according to Article 58-3 of the Labor Standards Act include reporting, television producing, and design.

Samsung Electronics plans to reach an agreement with worker representatives shortly on three plans, which are to go into effect on July 1 following an international briefing.

“Despite the reduction in working hours, Samsung Electronics appears to be taking maximum advantage of allowable systems under the current law to maintain current working patterns,” Korea Labour & Society Institute director Kim Yu-seon said of Samsung’s plan.

Labor attorney Lee Jin-a noted, “A discretionary work system means not even giving work directions, and it’s not certain whether that will happen.”

“There may not be any issues legally, but it won’t be easy to apply in reality,” Lee predicted.

An MOEL senior official said, “It’s tough to tell from what Samsung Electronics has announced so far how it will meet the 52-hour system. What we’re interested in are the actual content and effects.”

Flexible working hours at other major companies

Lotte and Hanwha Chemical released their own response plans for the reduced working hours the same day. Lotte, which was one of the first to adopt a mandatory computer shutdown system last year, said it plans to hire additional production workers. For ice creams and other items with sales coming chiefly in the summer, it is considering retooling its shift system or hiring new production workers, with Lotte Food scheduled to take on new on-site manufacturing workers in anticipation of peak demand between May and August.

Hanwha Chemical announced plans to introduce an “in time package” including flexible working hours in two-week units. Adopting a standard of 80 hours of work in a two-week period, it grants a reduction in working hours to match overtime during that time. For example, one of the spouses in a “weekend couple” could take off early after a four-hour shift on Friday morning, filling out the 40-hour weekly total through overtime on a chosen day during the two-week period.

LG Electronics introduced an elective working hour system in February. Clerical employees are allowed to choose their own daily working hours between a minimum of four and maximum of 12. A pilot 40-hour workweek system for clerical employees is currently being run, while a 52-hour working week for technical positions in being expanded throughout the product line. Hyundai Motor began implementing a flexible work system for a portion of its head office organization early this month, setting a period from 10 am to 4 pm as “focused working hours” while allowing workers to freely set other hours.

“After gathering opinions from employees ahead of the system’s implementation, we plan to address issues by adjusting the focused working hours or excluding personal business from working hours,” Hyundai Motor said.

The Shinsegae Group, which was one of the first to reduce its working hours to 35 per week early this year, said quality of life for employees has greatly improved as a result. The number of employees using the company fitness center jumped from 150 per day last year to over 200. In the case of company day care center departure times, around 20 percent of children remained until 7 pm as recently as Dec. 2017; since the start of 2018, all of them have gone home before 6 pm.

 

By Choi Hyun-june and Park Ki-yong, staff reporters

Please direct comments or questions to [english@hani.co.kr]

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