5 Major Economic Organizations "Labor Director System Introduction Must Be Immediately Halted... Request for Reconsideration"

[Asia Economy Reporter Ki-min Lee] On the 8th, the Democratic Party of Korea held a full meeting of the Planning and Finance Committee and attempted to pass a bill on the introduction of labor directors in public institutions, but major economic organizations strongly opposed it. They emphasized the need for sufficient review and national consensus on the side effects caused by the introduction of labor directors in public institutions.

The five major economic organizations, including the Korea Employers Federation, the Korea Chamber of Commerce and Industry, the Korea International Trade Association, the Korea Federation of Small and Medium Business, and the Korea Federation of Medium-sized Enterprises, issued a joint statement titled "Joint Position of the Economic Community on the National Assembly's Attempt to Amend the Law for the Introduction of Labor Directors."

The economic organizations requested, "The National Assembly's Planning and Finance Committee should immediately stop pushing for the resolution of the 'Amendment to the Act on the Operation of Public Institutions' to introduce labor directors in public institutions and seriously reconsider the problems that the introduction of labor directors will cause."

They continued, "The economic community has repeatedly emphasized that before promoting legislation, sufficient review of side effects and national consensus must precede, citing issues such as the deepening imbalance of power in labor-management relations, distortion of board functions and reduced speed of managerial decision-making, promotion of reckless management and moral hazard in public institutions, and the impact on private companies due to the introduction of labor directors in public institutions. Nevertheless, it is utterly incomprehensible that the National Assembly is once again pushing for the passage of laws to introduce labor directors without sufficient review of the side effects."

Furthermore, they urged, "We hope the National Assembly will listen to the earnest requests of the public and the economic community, who are doing their best to overcome the COVID-19 outbreak and the resulting economic and employment crisis, and immediately halt the legislative process."