The Economic and Social Council Approves Public Institution Labor Director System Despite Unanimous Opposition from Business Sector

Business Community "Concerns Over Worsening Labor-Management Conflicts"
Chairman Moon Seong-hyun "Prompt Legislative Action Needed"

Moon Sung-hyun, Chairman of the Economic, Social and Labor Council, delivering a greeting at the Democratic Party of Korea's Social Solidarity Fund discussion meeting held at the National Assembly in Yeouido, Seoul, on the afternoon of the 21st. (Photo by Yonhap News)

[Sejong=Asia Economy Reporter Moon Chaeseok] A social agreement to introduce the labor director system, where workers participate in management at public institutions, has passed the plenary session of the Economic, Social and Labor Council (ESLC). The ESLC is a social dialogue body directly under the president.

The ESLC announced on the 23rd that at the plenary session held in writing on the 19th, it approved six agenda items, including the "Agreement for the Sustainable Development of Public Institutions" (hereinafter referred to as the Public Institution Agreement).

These agenda items were agreements prepared by sectoral and thematic committees under the ESLC. The plenary session approval signifies the final ratification of the agreement at the ESLC level.

According to the ESLC Act, the plenary session consists of 18 members, including the chairperson, standing members, five worker representatives, five employer representatives, two government representatives, and four public interest representatives.

The Public Institution Agreement was released by the Public Institution Committee under the ESLC in November last year. It mainly includes introducing the labor director system to public institutions and reforming the wage system into a job-based pay system.

The Public Institution Committee is composed of worker representatives, government representatives, and public interest representatives. Employer representatives, who represent the management sector, were excluded as they are not direct parties.

However, at this plenary session, four employer representatives expressed a "disapproval" opinion on the Public Institution Agreement agenda. Considering that one of the five employer representative seats is currently vacant, this effectively means all employer representatives opposed it.

The management sector opposes the introduction of the labor director system in public institutions, arguing that it could spread to private companies and exacerbate labor-management conflicts.

It is unusual for all employer representatives at the ESLC plenary session to oppose a specific agenda item. This indicates that there is still a long way to go before the introduction of the labor director system.

In addition to the Public Institution Agreement, the plenary session also approved agenda items such as agreements for maintaining the tourism industry ecosystem and employment stability, resolving blind spots in industrial accident insurance for delivery workers, and improving the worker representative system.

Moon Sung-hyun, chairperson of the ESLC, stated, "We will consult with government ministries and the National Assembly to ensure that the improvement plan for the worker representative system and the labor director system can be legislated promptly."

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