Government's Labor Reform Declaration Welcomed by Business Community... "Hope for Swift Legislative Progress"

KCCI "Agree on Direction... Helps Job Creation"
SMEs "Expect Flexibility in 52-Hour Workweek"
IT and Gaming Industry "Positive on Monthly Adjustment"

Lee Jeong-sik, Minister of Employment and Labor, explaining the direction of labor market reform [Image source=Yonhap News]

"It is the era of knowledge work, so regulating from a manufacturing perspective does not make sense. There is a need to shift labor policies to ensure employees' work-life balance while reflecting reality."

An accelerator (startup planner) who requested anonymity said, "Most startup CEOs have been considered 'potential criminals' until now," welcoming the government's revision of the 52-hour workweek system. When the Ministry of Employment and Labor announced a plan to significantly ease labor regulations, including the 52-hour workweek system, which had long been a wish of the business community, the industry responded with enthusiasm. As the labor environment rapidly shifts from manufacturing to knowledge industries, there is also a stance that legislation should proceed promptly.

The Korea Employers Federation stated in a press release on the 23rd, "The business community agrees with the direction of improving the working hours system and reforming the wage system announced by the Ministry of Employment and Labor in its labor market reform plan," adding, "We believe this will help overcome the economic crisis and create jobs." In particular, they took a positive stance on the proposal to manage extended working hours of up to 12 hours per week on a 'monthly basis.' A representative from the machinery industry said, "Allowing the 52-hour workweek to be applied on a monthly basis is expected to create a more efficient and stable work environment."

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho is shaking hands with Kim Ki-moon, President of the Korea Federation of Small and Medium Business, during a visit to the Korea Federation of Small and Medium Business in Yeouido, Seoul, on the 18th. Photo by Kang Jin-hyung aymsdream@

The Korea Federation of Small and Medium Business also stated in a position paper that "the rigid 52-hour workweek framework has made it difficult for SMEs to cope with chronic labor shortages and irregular overtime, but we expect many of these difficulties to be alleviated." They added, "We hope the government will continue to communicate with businesses on the ground and push forward labor market reform tasks with a sense of urgency," and urged, "We also ask the National Assembly to expedite bipartisan legislative supplementary measures related to this."

Yang Ok-seok, Director of Workforce Policy at the Korea Federation of SMEs, said, "We are pleased that the issues we have continuously requested and proposed have been reflected," adding, "The SME sector will also strive to improve long working hours and protect health rights, considering employees' work-life balance."

The IT and gaming industries also welcomed the move. Due to the nature of these sectors, which have a high proportion of developers, intensive work is required for a certain period when starting new projects, and the 52-hour workweek system had been an obstacle. In particular, in the gaming industry, delays in new releases have affected performance and stock prices. A representative from the gaming industry said, "We agree with the opinion that flexible operation according to each company's and industry's circumstances is necessary, and we view the adjustment from a weekly to a monthly basis positively," adding, "In gaming and IT, where numerous job categories and departments work interconnectedly, we hope the extension of the selective working hours system calculation period will apply to all job categories."

However, regarding the reform of the wage system centered on job and performance, concerns were raised that considering the vastly different business management forms by industry, companies will effectively have to create their own job-based wage manuals, which will not be an easy process. There was also disappointment that the reform plan did not include measures related to strike activities such as workplace occupation by non-union workers and the labor director system in public institutions. The Korea Employers Federation urged, "Going forward, we must promptly pursue allowing substitute labor in line with global standards, abolishing criminal penalties for unfair labor practices, and a complete ban on workplace occupation."