November 22, 2024

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Daewoo Engineering & Construction's union head Shim Sang-chul (left) and the builder's CEO Baek Jeong-wan pose for a photo at a labor-management agreement ceremony held earlier this month. (Daewoo E&C)

Daewoo Engineering & Construction and its labor union have joined hands in the effort to create positive, amicable workplace culture for all workers and break through market challenges together.

According to the South Korean builder on Tuesday, the management and union reached an agreement earlier this month to reform the company's personnel management systems. The plan includes simplifying the ranking system and upgrading personnel evaluation and wage schemes.

They also completed this year’s wage negotiations, including the introduction of a type of paid leave for workers in which they can "refresh" themselves for up to two months while receiving 50 percent of their base salary, without conflicts.

"Since we have put constant effort two years of continuous negotiations with our labor union, we were able to reach a consensus on such sensitive subjects," said a company official.

The union’s 37th-anniversary celebration on Aug. 12 was also a festive event where a total of eight members were invited to participate in a masked singing contest. CEO Baek Jeong-wan joined the event to promote good relations by preparing a singing performance with the union leader, Shim Sang-chul.

Daewoo is a rare case of a friendly management-union relationship at a time when other parts of the construction industry have been seeing wage cuts and job instability amid rising material costs, high interest rates and business uncertainty.

"By building trust between the company and the labor union with an open mind, we could see the potential to overcome the challenging market conditions. I hope we can continue our mutually beneficial cooperation,” the Daewoo official said.

By Park Min-ha (en23mp@heraldcorp.com)