"Labor 'Paradigm Shift' Coming: '90% for the Chamber of Labor' 'Equal Pay for Non-Regular Workers'"

Government and Ruling Party to Pass ILO Convention Ratification Within the Year
Kim Jong-in: "Political Will Needed to Address Deepening Polarization"
Business Community Expresses Concern Over Further Deterioration of Labor-Management Relations

Lee Won-wook, Member of the Democratic Party of Korea./Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporters Park Cheol-eung and Lee Chang-hwan] A strong wave of labor rights strengthening is sweeping through the political sphere. The government and the ruling party plan to pass the ratification of the International Labour Organization (ILO) core conventions and related labor law amendments within the year. Additionally, they are promoting a 'Korean-style Labor Council' for those who find it difficult to join labor unions. Kim Jong-in, the emergency committee chairman of the People Power Party, also stated that a 'political decision' is necessary for fundamental changes such as 'equal pay' to eliminate discrimination against non-regular workers. Following real estate and the 'three economic laws,' labor issues are expected to come to the forefront, deepening concerns within the business community.

According to the National Assembly on the 15th, Lee Won-wook, a member of the Democratic Party of Korea, recently proposed the 'Act on the Establishment and Operation of Labor Councils.' Considering the labor union organization rate and collective agreement application rate, which are only 10%, the establishment of an organization for unorganized vulnerable workers is seen as a social task. Labor councils have long played a role in countries such as Germany and Austria.

It can be viewed as an organization corresponding to the employers' association, the Chamber of Commerce and Industry. It was a campaign pledge of President Moon Jae-in, and during the 20th National Assembly, former Democratic Party lawmaker Lee Yong-deuk, who served as chairman of the Federation of Korean Trade Unions, proposed a bill but it was not properly discussed.

The government and ruling party are aiming to make the ratification of the ILO core conventions the first step in strengthening labor rights in the 21st National Assembly. Ahn Ho-young, the ruling party's floor leader on the National Assembly's Environment and Labor Committee, said, "We need to decide on the ratification bill and labor-related law amendments currently in the National Assembly within the year," adding, "Since these contain significant progress in strengthening labor rights, we hope for the opposition party's cooperation. Once ratified, more discussions will be possible."

Among the eight ILO core conventions, Korea has not ratified four, including 'Protection against Anti-Union Acts,' 'Prohibition of Forced or Compulsory Labor,' and 'Freedom of Association and Protection of the Right to Organize.' The government plans to ratify these this time and simultaneously amend laws to support them.

The government's proposed amendment to the Labor Union Act includes provisions allowing dismissed workers to join company unions and removing the ban on paying salaries to union full-time officers. Considering business demands, the validity period of collective agreements is extended from two to three years, and clauses prohibiting strike actions involving occupation of production facilities are also included.

The Democratic Party proposed a stronger bill. The bill recently proposed by Representative Ahn opens the way for retirees to become union executives and abolishes the administrative authority's rejection system for union establishment. It does not include a ban on occupation-type strike actions.

On the 13th, Kim Jong-in met with Kim Jong-chul, the newly appointed leader of the Justice Party, and discussed megaton-level issues that could shake up the labor market. He said, "This is not about making dismissals easier," but "about creating union relations that generally benefit workers." He emphasized the transition to industrial unions and equal pay for equal work. He also said, "The polarization within labor is widening, and without political decisions, it can never be resolved."

The Democratic Party has been pushing for equal pay for equal work but claims that the People Power Party has ignored it, so they are asking the People Power Party to consolidate opinions within the party. Han Jeong-ae, chair of the Democratic Party's Policy Committee, told Asia Economy in a phone interview, "We have tried to incorporate equal pay provisions into the Labor Standards Act, but it was opposed and did not pass; instead, demands for labor flexibility and easier dispatch were made," adding, "Regarding what Chairman Kim said, I hope the People Power Party gathers opinions within the party and proposes a bill."

She continued, "Labor issues involve many social disputes, so dialogue through the Economic, Social and Labor Council (ESLC) is necessary. The Democratic Party is proposing bills on matters considered socially agreed upon," adding, "It is good to raise the issue, but it should not be done as if from the clouds. It must be discussed sharply in actual reality."

Companies are greatly concerned as labor law amendments that significantly strengthen workers' rights are being pushed following various corporate regulatory laws.

According to the 'Global Competitiveness Report' published annually by the World Economic Forum (WEF), Korea ranked 97th out of 141 countries in labor market flexibility and 130th in labor-management cooperation last year, placing it near the bottom. Among the detailed indicators composing labor market flexibility, the labor-management cooperation score, which evaluates whether labor relations are confrontational or cooperative, was 3.59 points (on a scale from 1 to 7), ranking 130th, indicating that Korea's labor relations are highly confrontational globally.

Comparing the average annual labor loss days per 1,000 workers over the past decade (2007?2017), Korea had 42,327 days, which is very high, while the UK had 23,360 days, the US 6,036 days, and Japan only 245 days.

A representative from the Federation of Korean Industries said, "Korea already has very strong labor union power and rights, and if the ILO core conventions are ratified, union power will increase further," adding, "Especially with the allowance of union membership for dismissed and unemployed workers, much more radical union activities are expected, which will deepen the imbalance in labor-management relations and amplify labor conflicts. Companies are concerned that Korea's labor relations, already among the worst globally, will deteriorate further."

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