SPC Group is set to overhaul the work schedule for its production staff. Prior to a company-wide expansion in October, a month-long trial will commence on the 1st of next month. On the 27th, SPC Group announced, “A new work system that limits night shifts to under eight hours will be introduced across all affiliate production sites,” stating that a tentative agreement has been reached with the labor union representatives of each affiliate. This move follows the “Resolution Plan for Reducing Long Night Work Hours,” which was announced shortly after President Lee Jae-myung visited the SPC Samlip’s Siwha factory for a meeting last month on the 27th.
To address the issue of reduced wages due to shorter working hours, SPC Group has prepared measures such as increasing base pay, introducing additional allowances, and raising the holiday and night shift allowance rates. A tentative agreement has already been made with the labor union, with further discussions on certain adjustable aspects planned through future collective bargaining agreements.
SPC Samlip and Shany will implement a three-shift system. At SPC Samlip’s Siwha bakery line, a three-shift working model will be introduced, with an interim six-day workweek. The working hours for production staff will be reduced from 52 hours a week to under 48 hours. To mitigate wage reductions resulting from reduced work hours and night shifts, a base pay increase and a raise in the holiday allowance rate from 50% to 75% have been agreed upon.
SPL will introduce a mid-shift between its existing day and night shifts, and implement a six-day workweek in some lines to reduce night work hours. The mid-shift will cover gaps caused by the reduction in night work. As a compensation measure, the night shift allowance will increase from 50% to 79%, and special allowances will be provided. Other affiliates like Paris Croissant, Shany, and BR Korea have also reached tentative agreements concerning their respective environments.
Through this reorganization, the group plans to hire an additional 250 production staff members. With SPC Group currently employing about 2,200 workers, of which 6,500 are in production roles, this change will result in a roughly 4% increase in production manpower. The group’s estimated annual additional costs, including labor and increased allowances, amount to about 33 billion won, equating to roughly 43% of last year’s total operating profit of 76.8 billion won.
During the trial period next month, each SPC Group affiliate will run the new work system to test and incorporate additional feedback, aiming for full implementation by October 1st. An SPC Group representative stated, “We have worked with labor union representatives to find the best direction for the overarching goal of enhancing worker safety. Alongside the overhaul of our work schedule, we plan to strengthen stop-work rights on-site and accelerate the construction of a new, safe, smart factory to bolster safety measures with full force.”