"The New Government's Top Labor Priority Is Flexible Working Hours"

Supplementing the Serious Accident Punishment Act and Establishing a Balanced Labor-Management Legal System Remain Tasks

[Asia Economy Reporter Park Sun-mi] Corporate interest and expectations are high regarding the new government's flagship pledge to flexibilize working hours. When asked about the most urgent labor issues the new government should address, companies most frequently cited ‘flexibilization of working hours’ (27.9%). This was followed by ‘supplementing the Serious Accidents Punishment Act’ (24.0%), ‘establishing a balanced labor-management legal system’ (21.7%), ‘easing labor market rigidity’ (16.3%), and ‘improving the minimum wage system’ (10.1%).

On the 18th, the Federation of Korean Industries (FKI) commissioned a survey through the polling agency Monoresearch targeting HR and labor practitioners from the top 500 companies by sales. The results showed that 34.9% of respondents believed the new government's labor policy direction would have an overall positive impact on corporate management and job creation, which was higher than the 9.3% who held a negative view. This suggests that corporate practitioners positively evaluated the new government’s labor pledges, including private-sector-led job creation, flexibilization of working hours, and reforming the wage system to reflect job roles and performance.

Regarding the most necessary policy for flexibilizing working hours, ‘extending the settlement period for flexible and selective working hours systems to one year’ was the most favored at 55.8%. This was followed by ‘expanding reasons for special extended work (such as overseas workplaces) and simplifying procedures’ (20.9%), ‘introducing a working hours savings account system’ (18.6%), ‘exempting professional jobs and high-salary workers from working hours regulations’ (3.9%), and others (0.8%, including easing or lifting the 52-hour workweek limit).

The FKI stated, “The rigid 52-hour workweek system has caused particular difficulties in labor management for industries with many production workers such as construction and shipbuilding, as well as overseas workplaces where many unforeseen variables occur,” adding, “This indicates strong corporate demand for the new government’s flagship pledge of flexibilizing working hours.”

Regarding the direction for improving the minimum wage, ‘differentiated application by industry and region’ was the most favored at 34.9%. ‘Refraining from excessive minimum wage increases’ was also high at 32.6%. Other responses included ‘supplementing the criteria for minimum wage determination’ (considering corporate payment capacity) at 21.7%, ‘abolishing weekly holiday allowance’ at 7.8%, and others at 3.0%. The FKI noted, “Although companies are investing heavily in safety management, the legal standards for safety and health obligations are ambiguous, which increases corporate anxiety and tends to constrain management,” and argued, “If the government clearly specifies the obligations companies must follow through amendments to enforcement decrees, it will reduce corporate management burdens and also enhance the effectiveness of accident prevention.”

For advancing labor-management relations, the most necessary improvement was ‘reforming combative union culture’ at 42.6%. This was followed by ‘strict law enforcement against illegal union activities’ at 37.2%. Other responses included ‘allowing employers to use replacement workers during strikes’ at 14.7%, ‘prohibiting union occupation of workplaces’ at 3.9%, and others at 1.6%.

Choo Kwang-ho, head of the FKI Economic Headquarters, said, “With the prolonged COVID-19 pandemic and soaring raw material prices increasing cost burdens, many companies are struggling under rigid labor regulations,” and added, “For job creation and economic recovery, we hope that unreasonable regulations will be improved as soon as possible and a business environment that encourages private sector innovation activities will be established.”

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