Son Kyung-sik Visits National Assembly Urging "Halt to Labor Standards Act for Fewer Than 5 Employees and Labor Director System"

"Applying Labor Standards Act to Workplaces with Fewer Than 5 Employees Increases Burden Such as 52-Hour Workweek"
Regarding Labor Director System, "It Does Not Fit Anglo-American Shareholder Capitalism"

[Image source=Yonhap News]

[Asia Economy Reporter Yu Je-hoon] On the 20th, Sohn Kyung-shik, Chairman of the Korea Employers Federation, met with Song Young-gil, leader of the Democratic Party of Korea, to express concerns regarding labor-related issues such as the application of the Labor Standards Act to workplaces with fewer than five employees and the introduction of the labor director system.

On the same day, Chairman Sohn, along with Kim Ki-moon, Chairman of the Korea Federation of Small and Medium Business, visited the National Assembly in Yeouido, Seoul, and met consecutively with Song Young-gil, leader of the Democratic Party of Korea, and Kim Do-eup, Policy Committee Chair of the People Power Party, to convey these concerns.

Chairman Sohn stated, "Applying the Labor Standards Act to workplaces with fewer than five employees will cause confusion due to the justification of dismissals and the implementation of the 52-hour workweek system, leading to increased labor costs from paying overtime and night work allowances." He added, "As a result, the very foundation of workplaces with fewer than five employees, which employ more than a quarter of workers in our country, could collapse."

Regarding the labor director system, he said, "First, the confrontational labor-management relations in Korea must be considered." He pointed out, "If the labor director system is introduced under the current labor-management relations, the board of directors could become a battleground for labor disputes, causing delays in efficient decision-making and information leaks, among many other side effects."

Chairman Sohn also emphasized, "The labor director system does not fit our economic system. According to a survey conducted by the Organisation for Economic Co-operation and Development (OECD) on 49 major countries, only 13 European countries and China have introduced the labor director system." He noted, "Unlike some European countries where the labor director system has been introduced, Korea has an Anglo-American shareholder capitalism system, and it is rare to find countries with such a system that have adopted the labor director system."

In particular, he stressed, "Although the labor director system discussed in the current National Assembly is said to be introduced only in the public sector, the reality is different." He warned, "If the labor director system is introduced in the public sector, labor groups will raise their voices to expand it to the private sector, and there is a high risk that related bills will be promoted."

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