KCCI 'Major Companies CHO Meeting'
Urging Rule of Law in Labor Relations and Resolution of Dual Labor Market Structure
Son Kyung-sik, Chairman of the Korea Employers Federation (third from the left), delivering a greeting at the 'Major Companies CHO Meeting' held on the 12th at Lotte Hotel, Sogong-dong, Seoul. Photo by Korea Employers Federation
[Asia Economy Reporter Hyunseok Yoo] "Labor reform is of utmost importance for companies to overcome the complex economic crisis and improve the dual structure of the labor market."
Son Kyung-sik, Chairman of the Korea Employers Federation, stated this on the 12th at the 'Major Companies CHO Meeting' held at Lotte Hotel in Sogong-dong, Seoul. He said, "Many companies faced difficulties last year due to international supply chain disruptions, high interest rates, and high inflation, and the economic conditions remain challenging in the new year."
The meeting was attended by chief human resources and labor officers (CHO) from major domestic companies such as Samsung, SK, and Hyundai Motor Company, where they exchanged in-depth opinions on labor reform and stabilizing labor-management relations in industrial sites.
In his opening remarks, he emphasized, "In response to the era of industrial transformation such as digitalization and decarbonization, labor reform is necessary to create jobs for future generations by establishing a fair and flexible labor market and a cooperative labor-management relationship."
Chairman Son presented the tasks of labor reform as ▲ labor-management rule of law ▲ enhancing labor market flexibility ▲ resolving the dual structure of the labor market ▲ restoring the balance of power between labor and management.
He stressed, "As President Yoon Suk-yeol emphasized, the starting point of labor reform is the labor-management rule of law," and added, "We will actively voice our opinions to the government to eliminate illegal acts in industrial sites." He further stated, "We will operate the 'Task Force for Responding to Illegal Acts in Industrial Sites' to promptly address difficulties faced by companies due to illegal activities."
Additionally, he explained that the flexible use of working hours and the establishment of a job- and performance-based wage system, recommended by the 'Future Labor Market Research Group' in December last year, should be legislated promptly to advance the labor market and secure competitiveness. He said, "It is necessary to improve the dismissal system to alleviate excessive employment rigidity and to expand the permitted industries for dispatch work, which are currently limited to 32."
He also mentioned, "The issue of the dual structure of the labor market is widely discussed socially," and urged, "Please refrain from excessive wage increases and use the resources for youth employment to participate in efforts to resolve the dual structure of the labor market."
Furthermore, Chairman Son emphasized that restoring the balance of power between labor and management is urgent for the advancement of labor-management relations. He pointed out that while the previous government significantly strengthened the union's right to organize, it did not supplement the employer's means of response, increasing the imbalance of power between labor and management. To resolve this, he explained that they will actively propose to the government and the National Assembly improvements to laws and systems aligned with global standards, such as permitting replacement labor and prohibiting workplace occupation.
Finally, Chairman Son Kyung-sik emphasized, "Public trust and support are very important for the success of labor reform," and added, "We will carry out multifaceted efforts to broaden public understanding and support for labor reform."
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