MSD Korea begins voluntary retirement

Union "strong response"

The suggestion of '2n+10' for employees of the GM division

MSD Korea Labor Union, "There is no management crisis and we will protect the right to live"

MSD Korea, which announced a reduction in manpower due to the abolition of the Januvia division, has begun a full-fledged reduction in personnel by disclosing the conditions for ERP.

 

The labor union of MSD Korea warned of a tough response, saying, "We cannot accept the company's attempt to reduce manpower." On the 12th, MSD Korea announced the conditions for voluntary retirement for GM division employees.

 

Employees who apply for voluntary retirement are paid a monthly basic wage equal to the number of months equivalent to the value of adding 10 to twice the number of years of service as a basic severance pay (2n+10).

 

The payment limit is limited to a maximum of 48 months.

 

In addition, an additional 20 million won is paid as severance compensation.

 

For example, if an employee with 10 years of service applies for voluntary retirement, he or she will receive a monthly base salary equivalent to 30 months and an additional 20 million won.

 

However, if the total severance pay exceeds the 'amount calculated by multiplying the number of remaining months until retirement by the monthly basic salary', the excess amount is deducted.

 

This voluntary retirement program is aimed at about 100 employees in the GM division.

 

The company began reorganization by handing over all rights of the diabetes treatment 'Januvia series' sold by the GM division to the domestic pharmaceutical company Chong Kun Dang.

 

The plan is to get rid of the GM division, which mainly sold chronic disease treatments, and leave only three divisions: anticancer drugs, vaccines, and hospital specialties.

 

The downsizing of the division was also accompanied by a reduction in personnel.

 

The labor union strongly opposed the company's attempt to cut personnel.

 

Since there was no urgent management problem to abolish the business unit, it is a position that it cannot agree to all attempts to reduce personnel, such as ERP, individual meetings, external career support programs, and layoffs.

 

The union said, "According to the Labor Standards Act and Article 18 of 'Employment Security' of the MSD Korea Collective Agreement, the union and all members will not participate in any sessions, including one-on-one meetings scheduled for the future." In addition, the union said, "The union and all union members will fight strongly by mobilizing all available capabilities to defend the right to live."