The Pitfall of Public Institution Staff Reductions... Are Facility Management and Cleaning Contract Workers Ultimately the Target?

Ministry of Economy and Finance: "No Plans for Gradual Adjustment or Artificial Restructuring"
100 Organizations under the Ministry of Justice: "We Will Not Reduce Staff"

Last August, Choi Sang-dae, the 2nd Vice Minister of the Ministry of Economy and Finance, briefing on the plan to reorganize the public institution management system. Photo by Yonhap News

[Asia Economy Culture Young Intern Reporter] As the government sets a policy to reduce unnecessary personnel for public institution innovation, it plans to cut more than 6,700 staff members by next year. The government is currently reviewing innovation proposals submitted by public institutions and will finalize the personnel adjustment plan later.

On the 24th, according to an analysis by Democratic Party lawmaker Go Yong-jin, a member of the National Assembly's Planning and Finance Committee, of innovation plans submitted by various institutions to the Ministry of Economy and Finance, 350 public institutions have decided to reduce their workforce by 6,734.5 personnel (the decimal indicates part-time hourly contract workers) by next year. Considering the total public institution workforce of 439,168, this represents about a 1.5% reduction.

By supervising ministry, the Ministry of Land, Infrastructure and Transport plans the largest personnel adjustment. It will reduce its workforce from 86,649 to 84,643 by cutting 2,006 staff members. The Ministry of Trade, Industry and Energy follows with 1,235.2, the Ministry of Culture, Sports and Tourism with 536, the Ministry of Education with 471, and the Ministry of Environment with 443 personnel reductions.

It is also pointed out as problematic that the personnel cuts in public institutions are concentrated on lower-level positions. The actual reduction targets include a large number of lower-level contract workers responsible for facility management, environmental cleaning, and janitorial services. Some institutions have also announced plans to reduce or outsource security and safety management personnel.

The Korea Water Resources Corporation under the Ministry of Environment plans to outsource facility security tasks to the private sector, reducing its workforce by 149. The Korea National Park Service, also under the Ministry of Environment, reported to the government that it will cut 58 staff members, including tour guides and janitors. The Korea Institute of Ocean Science and Technology under the Ministry of Oceans and Fisheries plans to select 15 personnel responsible for 'non-core functions' to reduce its workforce, and the Korea Disabled People's Development Institute plans to cut 9.5 personnel, including security guards and janitors.

Additionally, support counseling personnel handling social insurance, real estate contract guarantees, automobile and financial insurance, and inter-floor noise issues will also be reduced. The National Pension Service plans to cut 28 personnel responsible for Duru Nuri social insurance support counseling, and the Housing and Urban Guarantee Corporation will reduce 23 permanent call center staff and outsource the work to the private sector.

KORAIL Tech reported plans to reassign 42 permanent employees by abolishing facility security tasks, and the Korea Electrical Safety Corporation announced plans to reduce 398 personnel responsible for urban electrical safety management.

Personnel in public institutions aimed at improving the employment environment for vulnerable groups such as the elderly and disabled will also be adjusted. The Korea Senior Citizens Development Institute under the Ministry of Health and Welfare plans to reduce 7 personnel under the name of 'function adjustment.' The Korea Employment Agency for the Disabled will cut a total of 76 personnel, including 38 vocational experience center management staff, 15 personnel managing mandatory employment status for the disabled, and 13 personnel supporting employment placement and management costs.

However, it was found that about 100 institutions have no plans to reduce their workforce at all. This raises criticism that although the government is trying to reduce unnecessary personnel for public institution innovation, many institutions are not participating.

The Ministry of the Interior and Safety (including Korea Elevator Safety Agency, the Democracy Movement Memorial Foundation, and the Forced Mobilization Victims Support Foundation) and public institutions under the Ministry of Justice (Korea Legal Aid Corporation, Government Legal Affairs Corporation, Korea Rehabilitation Welfare Corporation) have no personnel reduction plans.

Lawmaker Go Yong-jin criticized, "The Yoon Seok-yeol administration is depriving citizens of job opportunities through indiscriminate public institution personnel cuts," adding, "They are especially trying to reduce jobs centered on lower-level positions vulnerable to dismissal." Previously, the Ministry of Economy and Finance's 'Public Institution Innovation Guidelines' stated that personnel adjustments and reductions would focus on higher-level positions, but actual innovation plans showed a prominent focus on lower-level personnel adjustments.

In response to these criticisms, the Ministry of Economy and Finance stated, "Regarding organizational and personnel efficiency, we plan to first reduce vacancies, which are the difference between authorized and actual personnel, and gradually adjust through natural retirements when excess personnel occur." They emphasized, "There are no plans to implement artificial restructuring of currently employed personnel."

However, this plan is a draft submitted by each institution to the government and is not yet finalized. The Ministry of Economy and Finance plans to finalize the 'Public Institution Innovation Plan,' including personnel reductions, by the end of November after review and approval by the Public Institution Innovation Task Force (TF) and the Public Institution Management Committee.