Promotion of KEPCO Labor Director System... Package Discussion with 'Job-Based Pay System' at the Tripartite Commission

Kim Jong-gap, President of Korea Electric Power Corporation [Photo by Yonhap News]

[Asia Economy Reporter Kim Bo-kyung] Korea Electric Power Corporation (KEPCO), the largest public enterprise in South Korea, appears to be pushing forward again with the introduction of the labor director system. The labor director system, which institutionalizes workers' participation in management, is one of the 100 major tasks of the Moon Jae-in administration. The Economic, Social and Labor Council, a presidential advisory social dialogue body, is also accelerating discussions on the labor director system. The business community has opposed its introduction, fearing excessive management interference by labor unions.

According to KEPCO on the 7th, KEPCO President Kim Jong-gap (photo) recently mentioned on Facebook, citing Germany's supervisory board as an example, "If we consider introducing the labor director system in public enterprises, I would like to raise my hand and try it once. Whether it becomes a success or failure, I want to take that path once."

KEPCO codified the introduction of the labor director system in its labor-management collective agreement in August 2018. At that time, President Kim agreed with the union on a collective agreement stating that "the corporation and the union will actively strive to expand workers' participation in management, including the labor director system." However, the amendment to the Public Institution Management Act (Gongunbeop), which provided the legal basis for introducing the labor director system, failed to pass the National Assembly due to opposition from opposition parties, and KEPCO's system introduction was also canceled. Since the ruling party overwhelmingly dominates the 21st National Assembly, there is a high possibility that the labor director system will be introduced if the law is pushed through.

The Economic, Social and Labor Council has recently been holding the Public Institution Committee weekly to discuss the labor director system and wage system reform (job-based pay system) as a package. A council official stated, "We plan to do our best to conclude discussions on union participation in management and sustainable wage system improvements within this month." He added, "There is a consensus to produce results as early as September or at the latest within the second half of this year."