Establishing Fair Trade Order! ... Busan Port Authority Revises 'Contract Guidelines'

Busan Port Authority.

[Asia Economy Yeongnam Reporting Headquarters Reporter Hwang Du-yeol] Busan Port Authority (BPA) is revising its contract guidelines by institutionalizing improvements discovered during the operation of the contract system to establish a fair trade order.

BPA reflected four key items in the revised guidelines, focusing on strengthening the safety of partner companies and promoting win-win cooperation: ▲establishment of special safety management contract conditions ▲active implementation of worker rights protection for human rights management ▲enhanced adjustment of appropriate delivery prices reflecting price fluctuations ▲compliance with conflict of interest prevention system for executives and employees in private contracts.

First, to protect the life and body of workers, BPA established special safety management contract conditions that separately stipulate obligations related to safety compliance in addition to general conditions when contracting for outsourcing, services, or consignment.

As special conditions, guidelines were prepared for the establishment and implementation of safety and health management systems, including necessary personnel and budget for disaster prevention, thereby strengthening the safety management foundation.

Matters related to the protection of rights such as human rights protection, employment stability, and labor environment for on-site workers were also codified. Contracting companies must submit a worker rights protection pledge and actively comply with the pledge during construction.

The contract guidelines also include a delivery price adjustment negotiation system to adjust appropriate delivery prices in response to price fluctuations such as raw material price increases. BPA plans to actively utilize the delivery price adjustment negotiation system upon separate requests from small and medium-sized enterprises.

To ensure fair and transparent contract execution, regulations codifying compliance with the conflict of interest prevention system for executives and employees were also established. According to the regulations, private contracts between job-related personnel and private stakeholders are completely blocked, and a confirmation form regarding restrictions on private contract execution is required before contracting.

Kang Jun-seok, BPA President, stated, “We will continue to improve the contract system to establish a fair trade order, protect worker safety and human rights, and strengthen win-win cooperation with partner companies.”

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