[The Editors' Verdict] Why the 52-Hour Workweek Requires Fundamental Reform

The Labor Standards Act is Out of Touch with Reality,
Does Not Help Job Creation,
and Cannot Reflect Additional Overtime Demand

These days, the political sphere seems desperate to fight. Viewing opponents solely as 'enemies' and all issues merely as tools for political strife, discussing cooperation?the foundation of politics?appears to be a luxury. There are no exceptions even for livelihood issues. Both ruling and opposition parties unanimously claim they will 'prioritize the people's livelihood,' but beneath the surface, this too is just a tool for political conflict. A representative example is the 8-hour additional extended working hours system, which ended late last year due to the failure of the ruling and opposition parties to narrow their differences.

The 8-hour additional extended working hours system was a temporary measure applied only to workplaces with fewer than 30 employees to alleviate the burden of the 52-hour workweek system expanded in July 2021. The law states, "Employers who regularly employ fewer than 30 workers may extend working hours beyond the extended hours by up to 8 hours per week, provided there is a written agreement with the workers' representative." The supplementary provisions set the sunset clause for this measure to December 31, 2022. This exception was introduced considering the difficulties faced by small businesses due to the sudden introduction of the 52-hour workweek system, and at the time, the political sphere urged companies to prepare countermeasures such as hiring additional staff during the grace period. However, problems arose. Due to the unforeseen variable of COVID-19, even foreign workers could not enter the country, exacerbating the chronic labor shortage in small and micro enterprises. On top of this, the triple burden of high inflation, high interest rates, and high exchange rates was added. They had to struggle for survival, making labor investment out of the question. Unfortunately, this environment continues to persist today.

The political sphere cannot be unaware of this. However, politicians seem to value their pride more than the pleas to save small business owners. After the abolition of the extension of the 8-hour additional extended working hours system was confirmed, an executive of the Korea Federation of SMEs visited an opposition party lawmaker, who reportedly responded nonchalantly, saying, "We just need to change the supplementary provisions..." and "We plan to handle it before the Lunar New Year, so wait." The ruling party is no different. The Democratic Party claims that the January extraordinary session is merely a 'shield for Representative Lee Jae-myung' and insists on discussing it again after the Lunar New Year holiday.

At least, it is fortunate that the government has granted a 'one-year guidance period' to prevent confusion among small and micro enterprises amid political confrontation. However, this is only a temporary measure. The government must show determination to establish a fundamental solution through supplementary legislation. There are three main reasons. First, the Labor Standards Act, enacted in 1953, does not reflect the current working environment in 2023. Although labor forms have diversified and industrial structures have rapidly changed, our Labor Standards Act still fits the framework of a 1953 manufacturing factory. To increase productivity, the labor time management system must be flexibly managed to encompass special-type workers and platform workers. Second, the current labor system does not significantly help job creation. According to a report by the Korea Institute for Industrial Economics and Trade, the implementation of reduced working hours decreased new jobs in companies by an average of 4.06. Third, there are certainly workers who want to work more as much as they want an evening life. The Labor Standards Act is a matter of survival for small and micro business owners and workers and can be a measure of national competitiveness. The government must show a resolve to stake its fate on revising the Labor Standards Act, which will be the foundation of labor reform, and take a more proactive stance. That is the role of the state.