Korea Federation of Small and Medium Business: "4.5-Day Workweek, Holiday Allowance, and Labor Standards Act Threaten Ecosystem"

Meeting Held with People Power Party Leadership
"Growing Concerns Over Recent Excessive Demands from Labor Unions"

The Korea Federation of Small and Medium Business expressed concerns to Jang Donghyuk, Party Leader of the People Power Party, regarding various policies recently being discussed under the leadership of labor unions, such as the ban on early morning deliveries.

(From left) Song Chiyoung, President of the Korea Federation of Micro Enterprises, and Jang Donghyuk, Party Leader of the People Power Party, are holding a meeting and taking a commemorative photo at the Korea Federation of Micro Enterprises in Yeongdeungpo-gu, Seoul on the 12th. Korea Federation of Micro Enterprises

On the 12th, Song Chiyoung, President of the Korea Federation of Small and Medium Business, held a meeting with Jang Donghyuk and other leaders of the People Power Party at the federation’s conference room in Yeongdeungpo-gu, Seoul. Song stated, "Not only are labor unions demanding a significant increase in the minimum wage, but they are also calling for a 4.5-day workweek." He added, "Excessive demands from unions, such as requiring holiday allowances for employees working less than 15 hours a week and severance pay for those employed for just three months, are continuously being discussed by the Ministry of Employment and Labor."

He continued, "If the holiday allowance is maintained and the application of the Labor Standards Act is expanded to workplaces with fewer than five employees, and on top of that, a 4.5-day workweek is implemented, small business owners will be forced to pay up to double or more for holiday and night work." He emphasized, "To make matters worse, the courier union’s demand to ban early morning deliveries would instantly collapse the small business ecosystem, which has barely found a lifeline online." He further appealed, "Small business owners are deeply anxious about employment policy changes that are centered on unions."

On this day, the federation delivered its demands to the People Power Party, including opposition to the 4.5-day workweek, abolition of the holiday allowance, and withdrawal of the plan to apply the Labor Standards Act to businesses with fewer than five employees.

The 'Top 10 Policy Tasks for Small Business Owners' proposed by the federation to the People Power Party on this day include: ▲ Establishing a social safety net for small business owners ▲ Improving the minimum wage system ▲ Expanding the income deduction rate for small business workplaces ▲ Supporting the digital and artificial intelligence (AI) transition for small businesses ▲ Expanding support for small business owners who close their businesses ▲ Establishing customized credit evaluation models ▲ Improving unfair trading practices on platforms ▲ Opposing the expansion of the Labor Standards Act to workplaces with fewer than five employees ▲ Streamlining the policy delivery system for small business owners ▲ Establishing a policy research institute within the Korea Federation of Small and Medium Business.

Jang Donghyuk responded, "While small business owners are struggling to survive, the Korean Confederation of Trade Unions has now raised the issue of banning early morning deliveries. The difficulties faced by small business owners are increasing, but the unreasonable demands of the unions are only getting louder, and it seems the current government lacks the power to reduce those voices, which is frustrating."

He added, "We will do our best to listen to the suggestions of small business owners and reflect them in policies and budgets in the National Assembly. However, since it is very difficult to push policies and secure budgets with only the voices of minority opposition parties, I ask the small business community to raise its voice together with us."