Public Institution Labor Directors, Mandatory Union Withdrawal... Labor Director System to be Implemented in August

Ministry of Economy and Finance Announces Legislative Notice for Amendment to Enforcement Decree of Public Transportation Act
Management Guidelines to be Delivered to Public Institutions

[Asia Economy Sejong=Reporter Kwon Haeyoung] As the labor director system for public institutions is set to be introduced in August, labor directors will be required to withdraw from labor unions.

According to the Ministry of Economy and Finance on the 10th, the "Guidelines on the Management of Public Enterprises and Quasi-Governmental Institutions," which include qualifications, authority, and obligations of labor directors, will be delivered to public institutions on the same day. This is a follow-up measure following the passage of the "Act on the Operation of Public Institutions (Public Institution Act)" in February, which centers on the introduction of the labor director system for public institutions, along with the legislative notice of the enforcement decree amendment on the same day.

According to the management guidelines, labor directors will no longer be able to maintain their status as union members. This is due to potential conflicts with the current Labor Union and Labor Relations Adjustment Act (Labor Union Act). Under the current law, union members lose their status if they act on behalf of the employer. Since labor directors are considered management, this conflicts with the Labor Union Act. For this reason, all 14 local governments, including Seoul City, that have introduced the labor director system require labor directors to withdraw from unions.

The business community has also expressed concerns that the introduction of the labor director system in public institutions will expand to private companies in the future and has argued that union withdrawal should be mandatory during the labor director's term.

The amendment to the Public Institution Act passed by the National Assembly in February did not include provisions related to the union membership status of labor directors, but the government has included the content that union membership cannot be maintained through these management guidelines. On the other hand, Europe, which has introduced the labor director system, does not have regulations that revoke union membership or force withdrawal, so some opposition from labor groups is expected. Additionally, the management guidelines include principles such as the unpaid nature of labor directors and prohibition of disadvantageous treatment.

The Ministry of Economy and Finance announced the legislative notice of the enforcement decree amendment of the Public Institution Act as a follow-up measure on the same day, which stipulates the principles of the labor director appointment procedure. According to the enforcement decree, if there is a majority union, the union representative must recommend up to two candidates to the executive recommendation committee (ERC). If there is no majority union, up to two candidates who have obtained the consent of the majority of workers through direct, secret, and anonymous voting must be recommended. The labor director system will be fully implemented with the formation of the ERC after August 4.

A Ministry of Economy and Finance official stated, "We plan to support public institutions so that they can proceed with amendments to their articles of incorporation for the introduction of the labor director system," and added, "The government will continuously support the successful establishment of the labor director system in public institutions through workshops related to the introduction of the labor director system and labor director education."

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