FKI "Legislation on Labor Director System in Public Sector Must Be Halted... Concerns Over Deteriorating Business Environment"

"The Playing Field Tilted Toward the Union Will Worsen and Reforms Will Be Blocked"

[Asia Economy Reporter Lee Hye-young] The Federation of Korean Industries (FKI) expressed "serious concerns" over the passage of the bill introducing the labor director system in the public sector through the National Assembly's Planning and Finance Committee's agenda coordination committee, urging the suspension of the legislative process.

On the 5th, FKI released a statement saying, "In a situation where strong labor unions dominate public institutions, it is clear that the public interest will be pushed aside to represent the interests of the unions," adding, "The labor director system will further tilt the playing field already biased towards the unions and block the long-awaited reform of public institutions."

FKI pointed out that the introduction of the labor director system in the public sector could lead to pressure for its adoption in private companies, arguing that "the already weakened business environment due to pro-labor policies will worsen further."

It continued, "In the unprecedented economic hardship caused by COVID-19, the business community is doing its utmost to restore economic vitality," and appealed, "We earnestly request the suspension of the legislative process for the labor director system, which raises significant concerns about side effects, so that efforts to overcome this economic crisis will not be in vain."

The labor director system in the public sector is a system where employee representatives of public institutions participate in the board of directors, exercising speaking and voting rights. The Planning and Finance Committee approved the amendment to the 'Act on the Management of Public Institutions' including the introduction of this system the day before.

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