Looking at the People Power Party's Labor Bill... Focus on Extended Working Hours and Reduced Union Powers

Chairman Kim Jong-in Proposes Amendments to Labor-Related Laws

On the 6th, a joint press conference of the Korean Federation of Trade Unions and the Democratic Party of Korea's Labor Respect Practice Parliamentary Group was held in front of the National Assembly in Yeouido, Seoul. Lee Sujin, a member of the Democratic Party of Korea, is speaking. Participants urged the enactment of legislation to eliminate discrimination against public officials and improve their treatment. Photo by Moon Honam munonam@

[Asia Economy Reporters Park Cheol-eung and Won Dara] Kim Jong-in, the Emergency Committee Chairman of the People Power Party, has proposed amendments to labor-related laws, bringing labor reform to the forefront of discussion.

On the 5th, Chairman Kim raised the issue of labor law amendments, emphasizing the need for new changes in the economic and social sectors. He stated that these amendments should be discussed alongside the ruling party's push for the three economic laws (Commercial Act, Fair Trade Act, and Financial Group Supervision Act) as part of a comprehensive structural reform of the Korean economy. However, Chairman Kim drew a line regarding the possibility of linking the legislative process of the three economic laws with labor law amendments.

In this context, Joo Ho-young, the floor leader of the People Power Party, appeared on MBC Radio's "Kim Jong-bae's Focus" on the 6th and said, "Realistically, if the Democratic Party accepts one but rejects the other, the floor leadership will have to consider the matter," adding, "It is desirable to handle the three economic laws and labor-related laws together." Regarding Chairman Kim's mention of labor law amendments the previous day, Floor Leader Joo said they had discussed it beforehand, noting that "(Chairman Kim) has always said that measures to increase labor flexibility should be taken alongside measures to enhance corporate transparency."

He continued, "We will launch a task force (TF) within the party to prepare for the amendment of labor-related laws." Regarding the timing of the three economic laws' passage, he said, "I hope to reach a conclusion within the regular session of the National Assembly if possible," and reiterated, "It would be good if it coincides with the labor-related laws." This revealed a willingness for a package deal.

The Democratic Party, however, holds the position that the 'three economic laws' and labor-related law amendments cannot be linked. On the 5th, Choi In-ho, the Democratic Party's chief spokesperson, told reporters that "labor-related law amendments have not been considered" in response to Chairman Kim's proposal. Han Jeong-ae, the Democratic Party's Policy Committee Chair, also said, "The moment you link them, it means not doing the three economic laws."

The Democratic Party is pushing for amendments to the Trade Union and Labor Relations Adjustment Act to allow unemployed and dismissed workers to join labor unions in order to ratify the International Labour Organization (ILO) conventions. In the last general election, they announced a joint pledge with the Korean Confederation of Trade Unions (KCTU) to promote ILO convention ratification and strengthen conditions for layoffs, which was also presented as a campaign promise.

Meanwhile, bills proposed by People Power Party lawmakers have reflected labor flexibility demanded by the business sector, such as allowing extended working hours and reducing the power of labor unions.

Within the People Power Party, Representative Chu Kyung-ho, Vice Chairman of the Policy Committee, has actively introduced bills. He served as the 1st Vice Minister of Strategy and Finance and as the Chief of the Office for Government Policy Coordination during the Park Geun-hye administration and is a prominent conservative economic expert currently serving on the National Assembly's Strategy and Finance Committee. In August, he submitted an amendment to the Labor Standards Act, arguing that "due to the nature of industries such as shipbuilding sea trials, large-scale maintenance or repair work in the petroleum, chemical, and steel industries, a temporary increase in total working hours is inevitable. However, under current regulations, it is impossible to further extend overtime hours, causing disruptions to industrial activities."

The core of the amendment is to allow extended working hours when unavoidable for national purposes such as securing industrial competitiveness, considering the characteristics of the industry. Currently, this is limited to recovery from natural disasters and accidents.

Since the 2018 amendment to the Labor Standards Act, working hours have been reduced, but the basic view is that flexible application according to each situation is necessary rather than uniform application.

Additionally, Representative Choi Seung-jae of the People Power Party, former president of the Small Business Federation, submitted a bill to remove the temporary deadline for provisions allowing employers with fewer than 30 regular employees to extend working hours within 8 hours and to expand the allowable extension time to within 10 hours for small business owners.

Independent lawmaker Hong Joon-pyo is directly targeting labor unions. In his amendment to the Trade Union and Labor Relations Adjustment Act submitted in July, he claimed, "Recently, as the socio-economic and political influence of labor unions has gradually expanded, the balance of power in labor-management relations has collapsed, and excessive demands by labor unions have caused business losses and economic deterioration."

He proposed amendments to restore the so-called "balance of power," including a complete ban on sit-in strikes, removal of the prohibition on replacement labor during strikes, easing conditions for employer lockouts and deleting related penalties, and extending the maximum validity period of collective agreements from 2 to 4 years.

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