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Tiger Beer
Joined: 07 Feb 2003
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 Posted: Wed Sep 14, 2005 6:56 pm Post subject: the cost of firing workers in Korea.. |
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http://english.donga.com/srv/service.php3?biid=2005091574908
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| In particular, firing costs are 90 times the weekly wages, or roughly two year��s pay. This is nearly three times that of the OECD average of 32.6 times (equivalent to about eight months�� salary). |
Funny that this is a news story in the paper. I've worked in many schools in Korea where people were fired at a moment's notice for all kinds of strange unexpected reasons.. can't imagine them getting paid for 2 years afterwards.. just doesn't happen.
Major media outlets are SO 'upper business management' centric sometimes. |
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joe_doufu
Joined: 09 May 2005
Location: Elsewhere
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| Posted: Wed Sep 14, 2005 9:36 pm Post subject: Re: the cost of firing workers in Korea.. |
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| Tiger Beer wrote: |
| I've worked in many schools in Korea where people were fired at a moment's notice for all kinds of strange unexpected reasons.. can't imagine them getting paid for 2 years afterwards.. just doesn't happen. |
I think "firing costs" includes all the costs to the company of firing a worker - not just severance pay. There are a lot of costs - lost productivity from being short-handed; recruitment fees and HR department salaries incurred in the search for a replacement; the possible need to pay a higher salary to the replacement; legal fees from the occasional firing-related lawsuit; the money and time spent training the replacement; pension obligations to the fired employee as well as the replacement; and so on.
Economically speaking, the lower the "cost of firing", the better. One reason that countries like Germany are suffering now is because they have incredibly powerful labor unions and it's too expensive to fire workers or close facilities. Actually I was surprised by that part of the article... most everything else I expected, but I didn't think workers' rights were so well protected (enforced) here.
Interesting to note:
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| A total of 29 steps need to be taken to seal a contract, more complex than the OECD average of 19. However, 75 days were needed until mandatory enforcement of contracts, far shorter than the OECD��s 232 days. |
I don't remember going through 29 steps... do you? |
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igotthisguitar
Joined: 08 Apr 2003
Location: South Korea (Permanent Vacation)
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| Posted: Wed Sep 14, 2005 11:02 pm Post subject: Re: the cost of firing workers in Korea.. |
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| Tiger Beer wrote: |
| Funny that this is a news story in the paper. I've worked in many schools in Korea where people were fired at a moment's notice for all kinds of strange unexpected reasons |
Here in Korea? Really? 
| Tiger Beer wrote: |
| Major media outlets are SO 'upper business management' centric sometimes. |
Who owns & exploits the media? Who "PROGRAMS" Korean society? Westerners? Farm or other blue collar workers? Not likely. Certainly not to the same degree that our cunning & driven white collar "masters" do.
Sad but true  |
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helly
Joined: 01 Apr 2003
Location: WORLDWIDE
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| Posted: Thu Sep 15, 2005 10:24 am Post subject: |
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Firing, lay-off, early retirement...they've all been lumped together. with so many ERP programs in Korea recently, its gettting all the news. Back in 2002, the average total monetary value of severance (this includes legal severance, additional payments, educational costs paid by the company to the former worker, etc (and there have been some huge etcs.)) was 16 months salary. I've know people who got upwards of 4 years, plus a private office and car service for a year while they looked for new jobs. I also knew people who got the standard severance (one month per one year) plus 2 additional months salary. That, at least in the business world, seemed to be the bare minimum. But departing employees always fought for more (one company even established a union AFTER they were told the business was shutting its doors!)
The high costs also reflect older people who had been in their jobs for a long time, so higher severance packages. As the ERPs are hitting people at a younger age, and folks aren't staying in positions as long as they used to, the numbers will come down. |
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