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HP Inc promises no job losses in South Korea

October 17, 2016

The hplogonew-200x114OEM declared that it has no strategy to lay off workers in Samsung’s printing sector.

The company said that it has “no plans to cut jobs” after the acquisition of Samsung’s printer copier business reported The Investor. HP Inc made the announcement after “2,000 researchers and engineers” conveyed concerns about “job security” after the deal to buy Samsung was announced in September.The Investor inquired about the concerns of employees, and HP Inc responded by affirming its “commitment to honour Samsung’s employment contracts on similar terms”.

In an email, the company stated that “[HP Inc] agreed to no involuntary terminations of non-executive employees in [South] Korea”, the site adding that the deal between the two companies means that HP will “strengthen its leadership in the global laser printing industry” and Samsung will “secure cash by selling off a less profitable business”.

South Korean workers are unhappy about the deal, which they were only informed of the day after it was made public, and because “employment succession is part of the deal” they are not permitted to transfer to other departments in Samsung’s other business sectors. The employees affected have protested that despite being told that their jobs will be secure for the next “three to five years”, no details of the “deal conditions” have been shown to them so far.

Enrique Lores, President of HP Inc’s Printing and Imaging Solutions, met with South Korean employees in September but did not elucidate whether the “company’s job security plan” would affect “all the workers”. There was also concern on HP Inc’s “restructuring programme”, as it was announced last week that HP was cutting 3,000 to 4,000 jobs during the next three years.

An anonymous Samsung engineer said that “HP has continued shrinking its workforce. There might be no immediate layoffs but we feel threatened in the longer term”, and some feel that top management at Samsung need to be more forthcoming informing its employees. A former employee added that when the company sold off its “defence and chemical units to Hanwha Group” in 2014, it was the same, noting “after a sell-off plan is announced, the management, especially the de-facto control tower Future Strategy Office, wouldn’t talk with employees”.

This former employee added that this attitude upset Hanwha and other joint venture partners at that time, and said that “a lack of communication deepens confusion and distrust among employees toward the management”. After the acquisition employees are “expected to be stationed at Samsung’s headquarters” in Suwon, and that includes the 6,000 workers (as well as 2,000 Koreans) who are “working at the division globally”.

The HP Inc printers will be sold “under the Samsung brand in [South] Korea”, and Samsung are “considering investing US$100 million (€90 million)in HP”, including buying stocks on the “open market”.

 

 

 

http://www.theinvestor.co.kr/view.php?ud=20161017000596

 

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