SPC Group to shorten night shifts, add 250 jobs in labor overhaul

South Korean bakery giant SPC Group said it will cut night shifts for production workers to eight hours or less starting Sept. 1, moving up its earlier plan by a month and pledging additional hiring and wage support to offset the reduced hours.

SPC announced the change after President Lee Jae Myung visited SPC Samlip’s Sihwa plant in July, where the company committed to eliminating long overnight work. Since then, SPC has restructured production schedules and reached provisional agreements with unions across its affiliates, the company explained.

From September, SPC Samlip and Shany will adopt a three-shift system, while SPL and BR Korea will introduce an additional “mid-shift” team to cover production gaps created by shorter nights. The overhaul is expected to create about 250 jobs, raising the number of production staff by 4 percent to 6,500 out of the group’s 22,000 employees.

To address concerns over reduced pay from shorter hours, SPC said it will raise base salaries, introduce new allowances and increase overtime and night-shift premiums. For instance, Samlip will raise holiday pay premiums from 50 percent to 75 percent, while SPL will boost night-shift premiums from 50 percent to 79 percent and add special bonuses.

The group estimates the changes — including extra hiring and wage compensation — will cost an additional 33 billion won ($24 million) annually, equivalent to about 43 percent of its 2024 operating profit of 76.8 billion won.

The new system will run on a trial basis through September, with full implementation scheduled for Oct. 1.

“The company worked with labor unions to prioritize worker safety. We will strengthen the right to stop unsafe work and accelerate the construction of new smart factories to improve workplace conditions,” an SPC official said.