(3) Loss-hit Doosan Heavy to carry out voluntary retirement program
Doosan Heavy Industries & Construction Co., the world's leading desalination plant builder, said Tuesday that it plans to carry out a voluntary retirement program in the latest move to cut costs. Doosan Heavy said its employees age 45 and above are eligible for the retirement program. Currently, the number of eligible employees is about 2,600 out of its total of 7,600 employees, according to the company. Doosan Heavy said it remains unclear how many of its eligible employees will opt to leave the company in the first retirement program in five years, citing the voluntary nature of the program. It did not elaborate on when the retirement program will take effect. The company has offered to pay the equivalent of up to two years' salary and college tuition for retirees' children as well as severance pay. In addition, those who have worked for the company for more than 20 years will receive another 50 million won (US$42,000). The latest retirement program comes as the company suffered net losses for the sixth consecutive year since 2014. In 2014, some 200 office workers at Doosan Heavy left the company in a retirement program.
(4) All Asiana Airlines employees to take unpaid leave amid virus crisis
Asiana Airlines Inc., South Korea's second-biggest airline, on Tuesday said all of its employees will take unpaid leave as air travel demand has plummeted due to the spreading coronavirus outbreak. Some of about 10,500 employees are set to take 10 days of unpaid leave starting Wednesday. Others will join the cost-cutting measure later in a way that does not affect flights. Asiana had 4,078 crew members as of Feb. 1, accounting for 39 percent of its total workforce of 10,538, according to the airline. Asiana Airlines also said it will cut wages of its CEO, executives and heads of departments by 40 percent, 30 percent and 20 percent, respectively. "We are desperately trying to come up with and implement measures to overcome a crisis of a massive operating loss this year," Asiana Chief Executive Han Chang-soo said in a statement. For 2019, Asiana's net losses widened to 672.6 billion won (US$565.3 million) from 96.2 billion won a year earlier, due mainly to a sharp decline in travel on Japanese routes. Asiana's operating losses widened to 368.2 billion won in 2019 from 35 billion won a year ago. All executives will offer to resign in a show of their commitment to overcoming difficulties sparked by the coronavirus, called COVID-19. The move comes as Asiana has temporarily halted 12 out of 26 routes to mainland China and reduced flights on 12 routes to the world's most populous country, leaving only two routes intact. Asiana is currently running 57 flights to China per week, compared with 204 before the coronavirus outbreak.