[비즈한국] Labor-management conflicts are intensifying at E-Land Retail, which recently entered emergency management due to deteriorating performance. As E-Land Retail terminates service contracts and shifts to a direct management system, the labor union is pushing back, claiming that employees are being unilaterally assigned tasks not included in their employment contracts. Allegations have also emerged that this workforce reallocation is effectively a precursor to layoffs, citing long-distance reassignments and duties unrelated to their previous roles.
Layoffs of Temporary Parking and Cart Staff After Emergency Management... Employees Forced to Fill Vacancies
On the 8th, the E-Land Labor Union filed a complaint with the Regional Employment and Labor Office against E-Land Retail and E-Land Kims Club for alleged violations of the Labor Standards Act. They argued that the company's mandate for employees to perform parking and security duties—not specified in their employment contracts—is unfair and constitutes workplace harassment.
A union representative stated, "Cart collection, parking, and security are not tasks that employees should be doing. Are these not clearly absent from our employment contracts?" They added, "These are not tasks we have performed before, and it is unfair to force us to do this support work while unable to focus on our own job responsibilities."
E-Land Retail declared an emergency management system last April due to falling sales and mounting losses. Since then, it has been ending contracts with third-party service providers and transitioning those tasks to a direct management model to cut costs. In this process, duties previously handled by outsourced personnel have been shifted to existing staff. With temporary workers who handled carts, parking, and security being laid off, full-time store employees are now covering these tasks.
The union claims, "Employees who were working on the floor are now in the parking lot guiding traffic, only to rush to the checkout counters when they become empty, all while also collecting carts. They are overwhelmed by the increased workload, and even their breaks are not properly guaranteed in this sweltering heat."
In response, an E-Land Retail official stated, "In accordance with the Ministry of Employment and Labor's recommendations, we plan to conduct an investigation through an external agency (a law firm) to ensure an objective and fair process."
The union points out that E-Land Retail's personnel reassignment feels like a step toward layoffs. They argue that the increasing inconveniences in daily life caused by these personnel transfers serve as a form of pressure to resign. A union official said, "Management and office staff have been transferred to the Cheonan logistics center. They are forcing employees living in Ilsan and Paju to commute to Cheonan. The company justified this by saying they were bringing the outsourced Cheonan logistics center under direct management. We expressed our refusal, but it was to no avail."
The official added, "The company emphasizes that we are in a total crisis, but how much financial or management benefit do they really gain by sending these people to a logistics center? Four employees currently transferred to the logistics center have filed for an injunction in court, arguing that the company’s reassignment is unfair."
E-Land Retail explained, "Regarding the logistics center, we are reflecting individual hardships—such as health, commute times, and family care—through consultations, and we have provided pre-job training and safety education. Notably, we have shortened the daily working hours by one hour to a 7-hour workday and are providing transportation expenses and shuttle buses."
Concerns Over Large-Scale Staff Adjustments Following E-Land Retail’s Subsidiary Merger
There is also ongoing friction regarding E-Land Retail's transition of Kims Club checkout operations to a direct management system. E-Land Retail recently ended its contract with the service provider that operated Kims Club checkout counters and placed about 50 E-Land Retail employees there—women who had previously been in charge of human resources, finance, and other office duties.
The union claimed, "The employees now tasked with checkout duties were originally hired as cashiers in the past. However, since those roles were outsourced 10 to 20 years ago, they have been working in office roles. Now they have been moved to completely different duties."
Concerns are also being raised about the method of personnel transfer between E-Land Retail and Kims Club, which are separate legal entities. A union official pointed out, "E-Land Kims Club, which operates Kims Club, is a separate entity from E-Land Retail. Yet, the company is labeling these reassignments as 'entrusted support tasks' rather than inter-entity transfers, and E-Land Retail is managing the personnel. Isn't this a form of disguised dispatch?"
Another union official criticized the inconsistency, noting, "When four Kims Club stores in the provinces closed in 2023, there were no nearby branches for the staff to move to. We requested they be transferred to E-Land Retail, but the company refused, citing that they were different legal entities. But now, even though the entities remain different, the company is forcing personnel transfers. It is highly contradictory."
In response to these points, E-Land Retail replied, "This is being carried out through consultation between the company and the employees."
E-Land Retail recently decided to absorb and merge its subsidiaries, E-Land Kims Club and E-Land Global, with the merger date set for September 1. Some express concerns that company-wide restructuring could begin in earnest following the merger. While legal constraints previously existed regarding personnel moves between separate entities, some predict that once the merger is complete, the freer movement of personnel, department restructuring, and job shifts could lead to large-scale staff adjustments.
E-Land Retail explained that the merger decision is merely a measure to strengthen business competitiveness and is unrelated to restructuring. An E-Land Retail official stated, "The merger is intended to create synergies between channels and content (hypermarkets, fashion) and strengthen our core business competitiveness through operational efficiency. It is not intended for the purpose of personnel reallocation." They added, "(Staff adjustments are) carried out within a range that maintains our competitive edge as a retail store, and we are prioritizing the employees' original job descriptions and relevant experience when making assignments."