Gov't to trim additional 3,000 jobs at public firms

SEOUL, March 31 (Yonhap) -- The government said Tuesday that it will slash an
additional 3,000 jobs at 60 small-sized public companies as part of its efforts
to improve overall business efficiency in the public sector.
The job reductions, including retirement, are equivalent to 12 percent of their
combined payrolls and should be completed by the end of 2012, the Ministry of
Strategy and Finance said in a statement.
The Korea Alliance to Defeat AIDS will see the sharpest payroll reduction of 54.1
percent, while the National Red Cross and the Korea Gas Safety have to lower
their workforce by 10.6 percent and 7.1 percent, respectively.
They are also required to sell 56.5 billion won (US$40.8 million) worth of
non-core assets including idling lands and buildings, the ministry said. Along
with expected reduced labor costs, the asset sales will be worth over 180 billion
won.
The moves are part of government efforts to streamline business efficiency in the
public sector which started in August last year. They represent the sixth such
reform package since then.
Under the previously-unveiled measures, the government said that it will
privatize a total of 38 public enterprises, with 39 firms subject to
consolidation. In December, it announced 19,000 workforce reductions at 69 public
companies over the next few years.
State-invested companies have been frequently under fire for its lax management
and foot-dragging in reform with their losses covered by taxpayers' money.
Public-sector reform is one of President Lee Myung-bak's campaign pledges.
They have also been placed recently at the forefront of the government-led job
sharing program aimed at encouraging companies to keep their workers by cutting
salaries.
In February, the government said that major state-run companies will slash
starting salaries for fresh college graduates by up to 30 percent this year to
provide more job opportunities.
kokobj@yna.co.kr
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