Economic Organizations Visit National Assembly Environment and Labor Committee, Urging to Stop Forced Passage of Labor Standards Act and Others

Major Economic Organizations Including KEC and KCCI Visit Environment and Labor Committee to Deliver Statement

[Image source=Yonhap News]

[Asia Economy Reporter Yu Je-hoon] Major economic organizations visited the National Assembly's Environment and Labor Committee on the 14th to express concerns about key labor-related bills being forcefully pushed through during this month's extraordinary session. They requested, "Please stop the forced legislation even now and prioritize discussions and social consensus on the impact of each bill on jobs."

The Korea Employers Federation, Korea Chamber of Commerce and Industry, Korea International Trade Association, Korea Federation of Small and Medium Business, Korea Federation of Medium-sized Enterprises, and Korea Federation of Micro Enterprise issued a statement saying, "The bills that the National Assembly is pushing for forced passage threaten the survival of small business owners and small and micro enterprises already struggling due to COVID-19, and some even deny the results of social consensus."

The bills they are concerned about include those that the National Assembly is pushing for forced passage during this month's extraordinary session: ▲ amendments to the Labor Standards Act mandating application to workplaces with four or fewer employees ▲ amendments to the Labor Standards Act related to the election of worker representatives ▲ amendments to the Labor Standards Act expanding the scope of ordinary wages ▲ amendments to laws stipulating obligations for employment and collective agreement succession upon business transfer.

The economic organizations pointed out that regarding the mandatory application of the Labor Standards Act to workplaces with fewer than five employees, "It will lead to a surge in labor disputes over increased overtime, night, and holiday pay, as well as dismissal issues," and warned, "This will inevitably cause a crisis for small businesses, which employ more than a quarter of domestic workers, and for small and medium enterprises responsible for over 80% of jobs, resulting in a job crisis."

Regarding the amendments to the Labor Standards Act related to the election and activities of worker representatives, they expressed concern that "a criminal penalty clause, which was not included in the social consensus of the Economic, Social and Labor Council last October, has been added, undermining the spirit of social consensus based on autonomous responsibility between labor and management and turning employers into potential lawbreakers."

Additionally, the economic organizations stated that expanding the scope of ordinary wages would not only undermine the joint efforts by labor and management to revise regulations since the Supreme Court's ordinary wage ruling in 2013 but could also lead to increased labor costs. They also noted that the bill mandating employment and collective agreement succession upon business transfer (such as business transfer, outsourcing, or subcontractor changes) would strengthen the vested rights of existing workers and potentially block job entry for future generations.

They emphasized, "The most urgent issue for our people right now is to revive the struggling livelihood economy and focus on the economy to create jobs," and earnestly requested, "We sincerely ask the National Assembly to listen to the desperate appeals of small and micro enterprises and the voices of future generations knocking earnestly on the door of employment, and immediately stop the forced passage of bills that go against economic revival and job creation."

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