May 5 'Labor Regulation Improvement Urging Grand Debate' Held
Calls for Flexible Overtime and Foreign Worker System Improvement
"Workers Face Wage Reduction, Multiple Jobs, and Worsening Work-Life Balance"
Small and medium-sized enterprise (SME) owners appealed to the government to ease rigid labor regulations such as the 52-hour workweek and foreign worker quota system, citing management difficulties and labor shortages.
On the 5th, 16 SME organizations, including the Korea Federation of SMEs, held a "Large Forum to Urge Improvement of SME Labor Regulations" at the Korea Federation of SMEs in Yeouido, Seoul, inviting Lee Young, Minister of SMEs and Startups. About 200 businesspeople from SME organizations attended, including Hwang In-hwan, Vice Chairman of the Korea Federation of SMEs, Choi Bong-gyu, Chairman of the Korea Federation of SME Convergence, Park No-seop, Vice Chairman of the Korea Women Entrepreneurs Association, and Kim Deok-jae, Vice Chairman of the IT Women Entrepreneurs Association.
They voiced about 20 urgent issues on site, saying they are facing management difficulties due to the rigid 52-hour workweek and labor shortages. Specifically, they requested △abolition of the sunset clause on the 8-hour additional overtime system △introduction of monthly extended work △flexibilization of the extended work system △expansion of foreign worker employment limits per workplace △minimization of changes in workplaces for foreign workers.
The Ministry of Employment and Labor has temporarily allowed workplaces with 5 to fewer than 30 employees to have an additional 8 hours of overtime per week until the end of this year, enabling a 60-hour workweek. Unless the Labor Standards Act is amended, the 52-hour workweek will apply to workplaces with fewer than 30 employees starting January next year.
Ku Kyung-joo, CEO of E-Plus, said, "At least the 8-hour additional overtime system is necessary to somewhat supplement the insufficient workforce, and when the system sunsets, we have to consider whether to continue the business," adding, "It is common sense that decisions should be made by agreement between workers and managers on site."
Ku, who operates a mart, expressed concern that if the 52-hour workweek is implemented, working hours will be reduced, and employees will have to be informed of wage cuts, with the monthly salary of employees in their 50s possibly dropping from 3.8 million won to 3 million won.
Kim Moon-sik, Chairman of the Korea Gas Station Operators Cooperative, argued, "If both labor and management agree, the current 12-hour unit overtime system should be made more flexible to at least a one-month unit so that work beyond 52 hours per week is possible."
Chairman Kim raised his voice, saying that due to the 52-hour workweek, workers are doing a lot of part-time jobs after work to make up for the reduced overtime pay, resulting in lower wages and worsening work-life balance (Work-Life Balance) compared to before.
Kang Bong-su, CEO of the venture company DeepVisions, said, "While establishing labor welfare standards, institutional improvements are needed so that they can be flexibly operated according to the circumstances of companies."
Park Jae-kyung, CEO of Samil Enterprise, called for improvements to the foreign worker quota system, saying that the labor contracts of foreign workers also need to be revised and supplemented. Kang Sung-joo, team leader of the Korea Specialty Contractors Association, suggested easing the system to allow employment restrictions by site for companies employing foreign workers.
In response, Minister Lee said, "Amid rising crisis awareness on site due to recent complex crises and external factors, rigid labor regulations such as the 52-hour workweek are reaching a point that could determine the survival of the industry," adding, "We will do our utmost to extend the sunset clause on the 8-hour additional overtime system."
He said, "This month, the government will announce policies to improve the labor environment, and attempts will be made to amend existing laws," adding, "There is little time to prevent the sunset. We will deliver the desperate voices from the field to the National Assembly and the Ministry of Employment and Labor this week."
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