MSD Korea reaches collective agreement with union

Settles on 77 terms covering working conditions carrying over to Organon Korea

Before the split-off, the management and the labor union finally ink the agreement

On Jan.

 

28, MSD Korea CEO Kevin Peter (right) and Labor Union Head Shim-sang Nam-won (left) sign the first collective agreement with negotiation representatives.

MSD Korea (CEO Kevin Peters) announced the company reached a collective agreement with the labor union on Jan.

 

28 before fully splitting off Organon Korea.

 

This marks the first collective agreement settled since the establishment of MSD Korea Labor Union.

 

And the company noted that it was a mutual collaborative outcome of the management and the union before the split-off takes place.

 

MSD Korea CEO, HR manager, MSD Korea Labor Union head and their negotiation council participated in the collective agreement signing ceremony held at MSD Korea headquarters and inked the final agreement.

 

Under the agreement, both parties settled on 77 terms regarding the employee benefits and the working conditions.

 

The agreed terms would be carried on to the new spin-off subsidiary Organon Korea.

 

Moreover, the two parties confirmed for the last time that they would make mutual collaborative efforts to successfully launch the spin-off company.

 

MSD Korea has decided to pay out incentive of 15 million won to each employees reassigned to Organon Korea to welcome them to the new environment.

 

The labor union also promised to cooperate as much as possible during the corporate restructuring process.

 

MSD Korea CEO Kevin Peters addressed, “I am exhilarated to see that the company and the labor union have come to an agreement after persistently engaging in conversation to make MSD Korea the best place to work and grow.

 

Based on the outcome, MSD Korea would focus on our task at hand making the future changes for the Koreans’ healthy lives.” In last February, MSD announced its plan to spin off a subsidiary Organon.

 

The spin-off company aims to seek global leadership and sustainable growth for the future of women’s health based on the diverse cardiovascular, urologic, respiratory, dermatology and women’s health portfolio.

 

By concentrating on oncology, vaccine, hospital-acquired disease and diabetes, MSD plans to significantly enhance the market presence as the premier research-intensive biopharmaceutical company.

 

Organon Korea is to kick off from this month in South Korea as a subsidiary of MSD until the global split off process is completed, which then the new company would be a full-fledged independent company from the latter half of the year.