"Need for Labor Market Flexibility... Concerns Over Trade Union Act Amendment"
Son Kyung-sik, Chairman of the Korea Employers Federation, being interviewed by Asia Economy. Photo by Jo Yong-jun jun21@
Son Kyung-sik, Chairman of the Korea Employers Federation, requested the newly appointed Chairman of the Economic, Social and Labor Council to create an institutional foundation that would make the rigid labor market more flexible and support a rational labor-management culture.
On the 13th, Chairman Son made this request during a meeting with Kwon Ki-seop, the new Chairman of the Economic, Social and Labor Council, who visited the Federation's headquarters in Mapo-gu, Seoul, to offer congratulations on his appointment. Chairman Son stated, "Our labor-management relations, rated among the lowest in the world, are the biggest obstacle to national competitiveness and job creation," and emphasized, "Sharing this awareness, the ongoing discussions among labor, management, and government should not be bogged down by immediate issues but should become social dialogue that can coexist with future generations through labor reforms that enhance flexibility in the rigid labor market."
Specifically, he pointed out the need to reform the seniority-based wage system into a job performance-based pay system and implement flexible working hour policies such as expanding the calculation unit for extended working hours. He also expressed serious concerns about the recently passed amendment to the Labor Union Act in the National Assembly plenary session. The amendment draws primary contractors into labor-management relations of subcontractors and limits the right to claim damages for illegal strike actions.
Chairman Son said, "If the amendment is realized, companies will inevitably relocate overseas or reduce their operations due to damages caused by labor disputes, and the resulting harm will fall on workers of small and micro enterprises whose jobs are threatened, as well as future generations," and added, "Rather than granting impunity for illegal acts, I hope the Economic, Social and Labor Council, led by Chairman Kwon Ki-seop, will play a significant role in improving laws and systems to establish a rational labor-management culture, starting with reforming extreme illegal practices such as workplace occupation and prohibiting workplace occupation."
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