The Second Tripartite Social Dialogue Ends Empty-Handed

Labor "Prohibition of Dismissals and Employment Stability" VS Management "Saving Companies is the Top Priority"
"Labor and Management Lack Awareness of the Current Crisis... Concessions and Compromise Needed"
Next Year's Minimum Wage Discussions Unlikely... Korean Confederation of Trade Unions "Tripartite Agreement is Priority"

On the 20th, the first tripartite social dialogue to overcome the COVID-19 crisis was held at the Prime Minister's Official Residence in Jongno-gu, Seoul.

[Asia Economy Reporter Kwangho Lee] The second tripartite representative meeting to overcome the novel coronavirus disease (COVID-19) crisis ended in less than an hour, showing clear differences in positions. The labor sector demanded a ban on layoffs and employment safety nets, while the management side insisted that saving companies should be the priority, leading to a tense standoff. The government expressed its intention to reach an agreement as soon as possible, but with the sharp confrontation between labor and management, difficulties are expected in finding a compromise. For this reason, the discussions on next year's minimum wage, which usually begin around this time every year, have not even taken their first step.

According to the government and labor-management sources on the 27th, the second tripartite representative meeting, which started at 3 p.m. the previous day, was adjourned after ongoing disputes between labor and management. The next meeting is scheduled for the 29th. A government official said, "We plan to hold the representative meetings about twice a week on average," adding, "It is still in the early stages, and since the schedule and discussion contents are confidential, we cannot provide further details." However, the official added, "From the government's perspective, we will try to find a compromise point that supports companies while maintaining employment above a certain level."

The Korean Confederation of Trade Unions (KCTU) and the Federation of Korean Trade Unions (FKTU) held a forum before the tripartite representative meeting and disclosed their respective demands. The KCTU urged the tripartite to set a "total employment maintenance goal" using indicators such as employment rates and called on the president to invoke emergency fiscal and economic decree powers to ban layoffs. They also proposed considering additional emergency disaster relief payments to all citizens if the COVID-19 situation worsens.

The FKTU also suggested that the government recommend a ban on layoffs to maintain employment and that employer organizations issue layoff ban guidelines to their member companies. They emphasized the legislation of a "Layoff Ban Act" that strengthens the conditions for managerial layoffs specified in the Labor Standards Act.

In response, the management side argued that saving companies struggling due to the COVID-19 crisis should be the priority. They also stated that maintaining employment during a crisis is a burden on companies, so they expect concessions from the labor side, such as restraint on wage increase demands.

Professor Dongwon Kim of Korea University’s Business Administration Department pointed out, "The tripartite dialogue is supposed to overcome the crisis, but it seems that labor and management currently lack awareness of the crisis situation." He added, "Now is the time for both sides to make concessions and compromises from their respective positions and approach the issue from a national perspective rather than presenting their own demands." He further advised, "The government, which holds the key amid the labor-management confrontation, should also consider how serious the current situation is and how to find a way out. The government should not be led by labor and management to solve their longstanding issues through this opportunity."

At the first meeting on the 20th, Prime Minister Chung Sye-kyun said, "Labor, management, and government inevitably have different positions. If each side insists only on their own stance, even small achievements cannot be made," and urged, "Please recognize differences from your own positions and sometimes exercise the virtues of restraint and patience."

Meanwhile, as labor and management fail to narrow their differences, the discussions on next year’s minimum wage, which usually start every May, remain "in the dark." The FKTU holds the position that social discussions for deciding next year’s minimum wage must be completed after the tripartite agreement is finalized. It is also reported that the FKTU has not yet decided who will serve as minimum wage commissioners.

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