People Power Party Think Tank: "Urgent Labor Reform Needed... Powerful Unions Create 'Tilted Playing Field'"

KCTU Says "Do Not View Labor as a Target for Reform"

Kim Jong-in, Emergency Response Committee Chairman of the People Power Party, visited the Korean Federation of Trade Unions in Yeouido, Seoul on the 28th. Before holding a leadership introductory meeting, he took a commemorative photo with attendees including Kim Dong-myeong, Chairman of the Korean Federation of Trade Unions. Photo by Yoon Dong-ju doso7@

[Asia Economy Reporter Park Cheol-eung] The People Power Party's Yeouido Research Institute pointed out that "urgent labor reform is needed," describing the current situation as a so-called "tilted playing field" biased toward labor unions. The proposed reform directions include "market-friendly" policies and "strengthening the rights of outsiders such as non-union members."

Kim Jong-in, the emergency committee chairman of the People Power Party, has called for amendments to labor laws alongside the 'Economic 3 Laws' and requested the participation of the Korean Confederation of Trade Unions (KCTU) in the party's task force (TF). However, the think tank's critical view of labor unions may provoke backlash from the labor sector.

Kim Chang-bae, head of the Economic and Social Research Office at the Yeouido Research Institute, stated in a recent report titled 'Recent Issues and Reform Directions Related to the Labor Market' that "the labor market is one where the strong monopolize opportunities and the ability to perform is suppressed," emphasizing that "fundamental and comprehensive reform is urgently needed."

He criticized the labor market as "divergent from the spirit of the constitution," pointing out that "labor unions in large corporations and the public sector, which include 10% of workers, enjoy benefits such as high wages and employment protection, while the remaining 90% are marginalized."

This aligns with Chairman Kim's proposal to shift toward industry-specific unions. Last month, during a meeting with Kim Jong-cheol, the newly appointed leader of the Justice Party, Kim Jong-in said, "It's not about making dismissals easier, but about creating a relationship where the overall workforce can benefit," adding, "Labor relations currently only involve employers and labor unions, and when their interests are established, the rest of the workers have no relation."

Kim Chang-bae also described the labor-management relationship as a "tilted playing field," stating that "labor unions wield overwhelming political influence to manipulate labor policies." As evidence, he cited behaviors such as "unauthorized workplace occupation during strikes and the inability to change employment rules without the consent of worker representatives," which he said are inconsistent with constitutional principles and global standards.

Regarding government intervention, he criticized it as "indiscriminate," highlighting issues such as "excessive minimum wage increases," "uniform reduction of working hours," and "retroactive application of ordinary wages."

He proposed three directions for labor reform: "establishing a technology- and market-friendly labor law order," "strengthening the rights of outsiders such as non-union members and the unemployed," and "organizing a legal system that harmonizes basic labor rights with the public interest." The report did not include a detailed analysis of "equal pay for equal work," which Chairman Kim has mentioned as a solution to non-regular worker issues.

Overall, the perspective leans toward the labor union side, suggesting that while reflecting corporate opinions, the labor rights of those not belonging to existing unions should be further strengthened.

Regarding recent contentious issues, the report summarized positions mainly based on legislative amendments proposed by lawmakers from the Democratic Party and the People Power Party. On flexible working hours, the People Power Party, like the business sector, supports expansion. On minimum wage, the business sector advocates for "differentiated application by industry, size, and age," while the People Power Party supports "differentiated application by type, size, region, and age," agreeing that the payment capacity of companies should also be considered.

On the 28th of last month, Chairman Kim visited the KCTU and proposed participation in the labor law amendment TF. The KCTU is currently reviewing whether to participate. A KCTU official said, "We have conveyed to the People Power Party that we cannot agree with the view of treating labor as an object of reform," adding, "We will decide on participation in the TF after scrutinizing the People Power Party's direction for labor law amendments."

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