State-run gas firm KOGAS to cut 305 jobs

SEOUL, March 26 (Yonhap) -- South Korea's state-run Korea Gas Corp. (KOGAS) said Thursday that its board of directors has decided to cut 305 jobs all at once, amid stiff opposition from its labor union.

The jobs, accounting for 10.7 percent of KOGAS' overall payroll, were scheduled
to be phased out by 2012 according to the government's plan.
Last December, the government announced it would slash 19,000 jobs in state-run
corporations and institutions, including Korea Gas and the state-run electricity
firm Korea Electric Power Corp. (KEPCO), accounting for 13 percent of its
combined workforce, over the next three to four years.
Unionized workers of KOGAS, however, are vehemently opposed to the decision,
claiming that the company should not eliminate workers to propel its new
projects, including Russia's natural gas pipeline construction.
KOGAS is pushing to participate in the construction of a natural gas pipeline
linking Sakhalin and Vladivostok, Russia.
Despite the decision by the board, the management and labor union reached a
verbal agreement to review the job-cut plan.
On Wednesday, KEPCO's board of directors sought to decide on its plan to cut
2,420 jobs -- 11.1 percent of its 21,743-strong workforce -- at a single swoop,
but failed due to the labor union's opposition.
ksnam@yna.co.kr
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