Government Launches All-Out Effort to Persuade Labor and Management... Lee to Meet with Heads of Major Labor Unions This Week

On February 21, former Democratic Party leader Lee Jae-myung and Yang Kyung-soo, chairman of the Korean Confederation of Trade Unions, are seen shaking hands at the Democratic Party-KCTU meeting held at the KCTU office in Jung-gu, Seoul.

President Lee Jaemyung will meet with the leaders of the two major labor unions this week. This comes just a few days after Minister of Employment and Labor Kim Younghoon met with the Korea Employers Federation. During a Cabinet meeting the previous day, President Lee emphasized the need for concessions and cooperation from both labor and management, stating, "A bird flies with two wings." The key question is whether the long-stalled social dialogue can be resumed.

According to labor and government sources on September 3, President Lee will hold a private meeting this week with Yang Kyungsoo, chairman of the Korean Confederation of Trade Unions, and Kim Dongmyeong, chairman of the Federation of Korean Trade Unions. This will be the first time since taking office that President Lee sits down with the leaders of both major unions. Prior to his inauguration, President Lee met with the two union leaders in February during the presidential election campaign. A meeting between the president and union leaders has not occurred since March 2020, when former President Moon Jaein had lunch with the union heads, marking about five years and six months since the last such event. Former President Yoon Sukyeol, who had targeted labor reform, kept his distance from the unions.

President Lee and the union leaders are expected to engage in direct discussions on current labor issues during the meeting. A representative from the Federation of Korean Trade Unions stated, "Since the Yellow Envelope Act (the amendment to Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act) has passed the National Assembly, it is now crucial to establish appropriate follow-up measures." The representative added, "From the union's perspective, we need to continue discussions on the 4.5-day workweek system and urgently address the issue of extending the legal retirement age, so we will discuss these matters in detail."

There is also interest in whether this meeting could serve as a catalyst for resuming tripartite talks involving labor, management, and the government. President Lee is likely to urge the unions to engage in dialogue and cooperation. During the Cabinet meeting on September 2, President Lee emphasized, "Workers can only exist if there are companies, and companies can only enjoy a stable management environment if there is cooperation from workers." He warned against making the mistake of "killing the cow while trying to straighten its horns," and called for everyone to take responsibility and join forces for economic recovery and sustainable growth.

The Korean Confederation of Trade Unions, which has not participated in social dialogue, is now open to the possibility of returning to the table. A representative from the KCTU explained, "We plan to discuss labor-government negotiations extensively with President Lee," adding, "We intend to strongly advocate for regular meetings between the unions and the government to discuss key issues." While the focus is currently on union-government dialogue, the union has indicated its willingness to participate in discussions as needed.

Some observers predict that the KCTU may announce its intention to participate in social dialogue even before the meeting. On this day, the KCTU will hold a central committee meeting to decide whether to join the "National Assembly Social Dialogue" initiative led by National Assembly Speaker Woo Wonshik. If the committee decides to participate, it will mark the first time in 26 years since the KCTU withdrew from the Tripartite Commission (now the Economic, Social and Labor Council) in 1999 that the union will sit down with management again.

The government is also listening to the voices of management. Previously, Minister Kim met with representatives of the Korea Employers Federation before President Lee, to once again hear business concerns regarding the Yellow Envelope Act and pledged to form an on-site support task force to minimize uncertainties following the law's implementation.

At the time, Sohn Kyungshik, chairman of the Korea Employers Federation, stated, "There are growing concerns that the amendment will threaten the industrial ecosystem between contractors and subcontractors and destabilize labor-management relations across industries." In response, Minister Kim promised to minimize uncertainties caused by the Yellow Envelope Act and asked for cooperation in ensuring the law takes root. He also emphasized, "Now is the time for labor, management, and government to pool their wisdom and experience to ensure this law is established as a law of mutual growth."