Opposition Party Challenges Economic Three Laws with Labor Law... "Flexible Working Hours and Wage System"

Opposition: From Company-Based to Industry-Wide Union System
Ruling Party Focuses on Blocking Linkage with Economic 3 Laws
Strong 'Opposition' from KCTU and FKTU

[Image source=Yonhap News]

[Asia Economy Reporter Lim Chun-han] The People Power Party has launched a counterattack by proposing amendments to labor-related laws in response to the government's and ruling party's push for the 'Economic Three Laws (amendments to the Commercial Act, Fair Trade Act, and Financial Group Supervision Act).' The core of the labor reform introduced by Kim Jong-in, the Emergency Committee Chairman of the People Power Party, includes flexibilization of working hours and wage systems, and a transition to an industrial union system. This reflects the recognition that labor-related laws must be revised to keep pace with the post-COVID era and the Fourth Industrial Revolution. It also appears to be a political strategy aimed at easing opposition from the conservative camp and the business community against the Economic Three Laws.

Im E-ja, a member of the People Power Party who will lead the task force (TF) on labor law amendments, said in a phone interview with Asia Economy on the 7th, "Labor laws have not escaped the industrialization era," adding, "The Labor Standards Act was essentially created with manufacturing in mind." She emphasized, "Nowadays, people can work regardless of time and place. The flexibility of working hours is no longer a matter to discuss. There are many platform workers, but it is difficult for them to be covered under current laws. We need to create new laws that can protect them."

There was also a call to shift from a company-based union system centered on large corporations to an industrial union system. Referring to Sweden's example, Representative Im said, "Chairman Kim and I believe that under the company-based union system, the gap between regular and irregular workers inevitably widens." This points out that company unions negotiate with management mainly on behalf of regular workers, excluding irregular workers, which structurally causes disparities among labor groups.

[Image source=Yonhap News]

Labor relations reform has long been a conviction of Chairman Kim. In his book, There Is No Eternal Power, he recalled the time in 1981 when he proposed amendments to labor laws under the Chun Doo-hwan regime, stating, "What I had in mind was a basic framework of industrial and occupational unions, with no labor union or branch of an external union existing within companies. Instead, a labor-management council involving entrepreneurs, white-collar, and blue-collar workers would be created to decide internal company matters."

Following Chairman Kim's labor reform proposal, the People Power Party has been moving swiftly, including forming a party-level TF. The TF will be composed mainly of members of the National Assembly's Environment and Labor Committee from the party, as well as figures from the business and labor sectors. The TF is expected to begin full-scale activities after the current national audit ends.

[Image source=Yonhap News]

The Democratic Party of Korea is focusing on blocking the linkage between labor reform and the Economic Three Laws, fearing that the labor reform issue could complicate the legislation of the Economic Three Laws. On the 6th, Lee Nak-yeon, the leader of the Democratic Party, quickly expressed opposition. On Facebook, he stated, "The labor law amendments proposed by the opposition are inappropriate. It painfully reveals that many workers are pushed to the brink of survival and that labor stability is extremely fragile," adding, "At this time, suggesting easier dismissals and more flexible wages sends a harsh message to workers."

In response, Joo Ho-young, the floor leader of the People Power Party, told reporters in the afternoon, "The Democratic Party only tries to do what suits themselves," calling it "very disappointing." When asked if this means that the Economic Three Laws cannot be passed without labor law amendments, Joo replied, "Correcting the business environment should be reasonably adjusted according to international standards, whether on the management or labor side," adding, "We will consider it further."

The labor community is also strongly opposing. The Korean Confederation of Trade Unions (KCTU) held a press conference in front of the People Power Party headquarters the day before, criticizing, "Chairman Kim's childish idea that the flow of chaebol reform, which is the demand of the times, can be diluted by empty rhetoric is laughable." The Federation of Korean Trade Unions (FKTU) also sharply criticized on the 5th through a spokesperson's statement, saying, "It is nothing but the 'Park Geun-hye party again,' which called easy dismissal and wage cuts reform."

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