[Alpha Biz= Reporter Kim Sangjin] Following KT's board decision to establish subsidiaries responsible for telecommunications network operations and management, the KT labor union has strongly opposed the move, announcing plans for overnight sit-ins and protest rallies. KT insists that the initiative is aimed at workforce innovation for operational efficiency rather than aggressive workforce reductions.

On October 15, KT's board convened to approve several agenda items, including the establishment of subsidiaries and the determination of dividend amounts.

The key aspects of the decision include the creation of KT OSP, which will handle the design of telecommunications facilities and customer transmission services, and KT P&M, responsible for designing and maintaining power facilities within the national infrastructure, as well as operating island networks and shelf wireless communications.

KT plans to invest 61 billion won in KT OSP and 10 billion won in KT P&M, creating wholly-owned subsidiaries. The plan involves transferring 3,400 employees (77% of the total 4,400) from KT's headquarters to KT OSP and 380 employees (90% of the total 420) to KT P&M. Employees who do not wish to be transferred will be offered a voluntary early retirement option. The overall workforce adjustment through separation and voluntary retirement is estimated to affect approximately 5,700 employees.

Transferred employees with at least 10 years of service will receive 70% of their previous base salary at KT, along with a one-time payment. Those with less than 10 years of service will receive 100% of their base salary but will not receive a one-time payment.

The KT labor union has expressed strong dissatisfaction, stating that there was no consultation with the union regarding this decision, effectively depriving workers of their choice. Following media reports about the subsidiary establishment, the union's central headquarters has been conducting overnight sit-ins since the previous day, and all eight regional headquarters plan to join the protests starting today.
 

 

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