The Doosan Group has become the nation’s first major business group to implement the wage peak system at all of its affiliates.
According to industry sources on Aug. 20, its four affiliates – Doosan Engine (white collar workers), Doosan Electronics BG, Doosan Corporation Industrial Vehicle BG, and Doosan DST BG – have finally decided to adopt the wage peak system in the group. The Doosan Group’s major affiliates, including Doosan Heavy Industries & Construction, Doosan Infracore, Doosan Engineering & Construction, and Doosan Engine (technical workers), has been implementing the wage peak system from 2014.
As the business units, which haven’t introduced the system until now, have decided to adopt the wage peak system, Doosan Group will implement the system at its all affiliates from Jan. next year.
The early introduction in the Doosan Group is largely due to the fact that its Chairman, Park Yong-man, sees the wage peak system as the key to competitive business power. Chairman Park, who also serves as chairman of the Korea Chamber of Commerce and Industry, has continuously stressed that the wage peak system is a necessary job coexistence measure between present and future generations.
The implementation of the wage peak system is also beginning to show results. Doosan Infracore has hired 358 new employees this year, up 132.5 percent from last year when the system started. The company has decided to gradually reduce salaries by 20 percent at the age of 58 and 30 percent at the age of 59 and 60 in exchange for extending the retirement age to 60.