Hynix Semiconductor staff go on unpaid leave
By Andrew Ward in Seoul
Published: October 25 2001 19:30 | Last Updated: October 26 2001 10:41
All 14,000 employees of Hynix Semiconductor have agreed to take a month's unpaid leave in a bid to save their jobs and help rescue the debt-laden South Korean chipmaker from collapse.
Hynix said the measure was designed to "relieve financial problems" but officials conceded that the move would hardly make a dent in the company's mounting multi-billion-dollar losses, caused by a slump in global demand for microchips.
All staff, including managers, will take it in turns to stay at home without pay for four weeks between November 1 and March 31.
"Labour costs are not so significant to a semiconductor manufacturer, but this is a gesture of workers' commitment to the company," said a person close to Hynix. "They would rather do this than lose their jobs altogether."
Hynix calculated that the savings generated by the step would be the equivalent of cutting the workforce by 20 per cent during the period.
Workers downing tools to help management - rather than as part of strike action - is a refreshing change for a country with a history of bitter labour disputes. At other troubled South Korean manufacturers, such as Daewoo Motors, employees have staged riots in protest at threatened job cuts.
Hynix hopes that by the time the workforce returns to full strength next spring, the recovery will have started in the semiconductor industry.
Earlier this week, Samsung Electronics, another South Korean chipmaker, forecast recovery in the second half of next year.
But the move could be partly a symbolic gesture aimed at impressing creditors, which are currently debating whether to keep the company afloat with a third bail-out package this year. |
