South Korea’s Kumho Tire Co. is sending its office workers to one-year paid leave by offering 70 to 90 percent basic salary during their voluntary furlough.
When counting out union members, about 1,200 workers can take up the offer.
Employees on three-month leave will still get 70 percent of their base salary, those on six-month leave 80 percent, and those on 12-month leave 90 percent.
This is the first time the company has concocted voluntary furlough program to save cost. It last offered early retirement after it went under China’s Doublestar Tyre in 2018.
Employees who are parents of at least one child aged 8 or under and worked for more than 180 days in office will be encouraged to apply for a parental leave. Applicants for one to three months of leave will receive up to 1.5 million won ($1,224.29) per month, and four to 12 months 1.2 million won.
Male applicants will be able to enjoy more benefits of up to 2.5 million won.
To boost participation, the management assured that this year’s leave won’t influence the count next year or influence promotion or other performance review.
The action comes as the automotive components makers grapple with surging inventories and thin orders as finished carmakers suffer shutdowns and poor sale due to global pandemic.
