Seoul City Announces 'Worker Director System 2.0' with Enhanced Authority and Responsibility

First Introduced in 2017, Term of 1st Session Ends
'National Workers' Directors Assembly' Formed
International Workers' Directors Forum Scheduled
Expecting Expansion in Asia Region

[Asia Economy Reporter Hyunju Lee] The Seoul Metropolitan Government announced the 'Worker Director System 2.0' and plans to actively promote it across Asia.

The city stated on the 3rd that with the term of 15 worker directors appointed in 2017 ending within the year, the first term of worker directors will conclude and the second term will begin, marking an important period for which improvement plans have been prepared.

The Worker Director System is a system where 1 to 2 worker representatives participate in the institution's board of directors, exercising deliberation and voting rights. They are non-standing directors elected through elections, serving a term of three years.

According to Seoul city-related ordinances, local public institutions with 100 or more employees are required to implement this system. Seoul's local public institutions include 5 investment institutions and 19 foundation institutions. Currently, 22 worker directors are active in 17 institutions. Two institutions are currently preparing to implement the system.

First, a Worker Director System Development Committee will be newly formed to promote and publicize the Seoul-type model and provide policy advice to other institutions. It will be composed of worker directors from local public institutions, labor and management representatives, and external experts.

Additionally, the city will establish a 'National Worker Directors General Assembly' to expand the system nationwide. Currently, six metropolitan cities and provinces nationwide, including Busan, Incheon, Gwangju, and Gyeonggi Province, have introduced and are implementing the Worker Director System by benchmarking the Seoul-type model. Furthermore, an International Worker Directors Forum will be held to facilitate the introduction of the Worker Director System in public institutions across Asian countries through exchanges with labor experts and public institution officials from each country.

The system will grant worker directors the authority to submit board agenda items through departments within the institution and the right to access information related to board agenda and operations. At the same time, the ordinance will newly specify grounds for the dismissal of worker directors and strengthen responsibilities such as the obligation to prepare activity reports and hold reporting sessions.

Moreover, the system supporting worker directors' activities and capacity building will be improved. Grounds will be established to appoint incumbent worker directors to roles consistent with their duties, such as human rights, ethical management, workplace harassment, and gender equality. Educational programs closely related to role performance, including relevant laws and regulations, conflict mediation, and board operation standards, will also be provided.

The city plans to pursue partial amendments to the 'Ordinance on the Operation of the Worker Director System' to realize Worker Director System 2.0.

Park Won-soon, Mayor of Seoul, said, "Seoul, which started the Seoul-type Worker Director System as the first in the nation and completed a three-year adaptation period, will spread the model nationwide and further promote policy exports to Asian countries, where worker participation in management is still undeveloped."

This content was produced with the assistance of AI translation services.