Not-so-new Start
Only 20 people have opted for the voluntary retirement program that Renault-Samsung Motors started offering from March 10 of this year. Under the “New Start Program,” in which the company hopes to restructure for better efficiency, a total of 500 people were anticipated to sign up.
The carmaker announced on April 14 that since initiating the New Start Program, a voluntary retirement plan for senior employees with more than 20 years at the company, only 4 percent of the company’s expected number of participants have applied between March 10 and April 15.
The program is targeted at 500 out of 2,100 senior employees in production and maintenance, and the company anticipates the downsizing of about 150-160 people. The program is intended to help aging senior employees start a new life with a new career via career development programs.
However, the company’s labor union has a negative view on the program. One labor associate said, “Another big-sized downsizing, on the heels of 2012’s laying off of 800, will have a negative effect on the company in the offing.” In the meantime, the management said, “The New Start Program is only a measure for reinforcing the company’s productivity, and it is not for forced downsizing. Extending the application period is under consideration, and there will be no forced layoffs.”