"Labor Relations and Legislation Must Change"... Academic and Business Leaders Form New Council

KCCI Launches Labor-Management Relations Advancement Committee
Collects Opinions to Propose Legal and Institutional Improvements to New Government

On the 24th, Lee Dong-geun, Vice Chairman of the Korea Employers Federation, is speaking at the executive meeting of HR and labor managers of major companies held at Lotte Hotel in Sogong-dong, Seoul.

[Asia Economy Reporter Choi Dae-yeol] The business community has recognized problems in the current overall labor-management relations and decided to form a consultative body including academic experts. Since labor laws do not adequately reflect the changing industrial environment, they plan to gather opinions through this consultative body and propose improvements to laws and systems to the new government.

On the 24th, the Korea Employers Federation (KEF) held a meeting of HR and labor executives from major companies to discuss such measures. KEF reported that they discussed recent labor-management issues and labor reform measures they hope the new government will pursue. Attendees agreed to launch a Labor-Management Relations Advancement Committee (tentative name) involving professors and academic experts as well as executives from major companies. KEF stated, "We will create an environment for reforming labor-management relations by establishing legal order in industrial sites, building cooperative labor-management relations, and advancing related laws and systems, and strengthen policy recommendations."

KEF viewed Korea’s labor-management relations as backward and in need of reform. They emphasized respecting autonomy between labor and management while strictly enforcing laws against illegal acts. As seen in the recent illegal occupation of CJ Logistics headquarters by the delivery workers’ union, there has been a tendency to shift responsibility among authorities regarding illegal activities. KEF stressed the need for the government and political circles to stop politically approaching labor-management relations and to modernize related laws and systems to meet global standards.

KEF explained, "The labor law enacted in 1953 has failed to respond to rapid changes in industrial structure and, due to overprotection of regular workers’ vested rights, hinders job creation for future generations and labor market flexibility. It causes an imbalance of power between labor and management, which is a main factor perpetuating adversarial labor-management relations and must be improved."

Specifically, they saw the need to ease employment rigidity and relax regulations related to dispatch, subcontracting, and fixed-term contracts. They emphasized increasing flexibility in working hours and revising procedures for changes to employment rules and the minimum wage system. To balance power between labor and management, they also called for allowing replacement labor, prohibiting workplace occupations, and improving unfair labor practice systems. They advocated for supplementary legislation on the Serious Accidents Punishment Act as well.

Lee Dong-geun, KEF Vice Chairman, said, "Korea’s labor market and labor-management relations rank among the lowest worldwide and are the biggest obstacle to national competitiveness. To restore labor market competitiveness and increase jobs, establishing legal order in industrial sites and reforming labor-management relations are urgent."

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