HomePlus labor and management agree to share the pain, but delayed severance interest remains a source of conflict

HomePlus labor and management have agreed to share the pain, including delaying salary payments by two months at a time until March next year to secure approval of the reorganization plan, and are working to obtain related consents. However, concerns arise that this could become a future flashpoint for labor-management conflict, as the consent proposal also includes waiving delayed interest on the shortfall in severance funds held outside the company.

According to the retail industry on the 25th, HomePlus labor and management recently agreed to delay salary payments by two months at a time until March next year, and to pay bonuses and consolation allowances in installments over six months. When HomePlus announced these measures last month, the Mart Union drew a line, calling it a unilateral proposal by the company. However, with the deadline for approving the reorganization plan approaching on the 4th of next month, both sides reached an agreement under the judgment that reducing the burden of wage claims would increase the likelihood of court approval of the reorganization plan. The consent currently being sought from current and former HomePlus employees regarding delayed payment of severance and wages is based on this agreement.

HomePlus believes that the consent rate for installment repayment of public claims, including wage claims, is a key factor in increasing the likelihood of approving the reorganization plan. This judgment stems from the concern that if the burden of repaying public claims cannot be reduced, financial pressure on implementing the reorganization plan will increase, potentially having a negative impact on court approval of the plan. Accordingly, HomePlus is focusing not only on current and former employees but also on raising the consent rate for installment payments among all public claimants. According to HomePlus's second reorganization plan, unpaid public claims amount to approximately 1.4129 trillion won, of which wage- and severance-related claims total about 63.3 billion won.

According to HomePlus, as of the 24th, the consent rate for related matters has exceeded 75%. While securing consents necessary for approving the reorganization plan is proceeding smoothly, the severance issue is identified as a potential future spark for labor-management conflict. The shortfall in severance funds held outside the company specified in the second reorganization plan amounts to 51.5 billion won, representing about 21% of the total amount subject to reserve. HomePlus plans to fully repay this by 2030.

The issue lies with employees who have resigned or recently left during the reorganization process. Due to the shortfall in severance funds held outside the company, these employees are not receiving their severance payments on time. As a result, they should receive delayed interest of about 6% on the unpaid severance, but it is reported that the consent proposal being sought from current and former employees by the company includes a waiver of this delayed interest. The Mart Union points out that the company has provided no separate explanation regarding this matter.

The Mart Union currently judges that approving the reorganization plan is the top priority and therefore will not formally raise this issue. However, it is understood that the union is internally informing its members about the relevant situation.

A Mart Union official stated, "Even a minimum interest on delayed severance payments should be paid, yet consent is being sought by bundling the waiver of such interest with the consent proposal for delayed payment of wages and bonuses." The official added, "Once the deadline for approving the reorganization plan passes, we will seriously consider relevant countermeasures."