Business Community: "The Amendment to the Labor Union Act Will Destroy Labor-Management Relations"

Amendments to Articles 2 and 3 of the Labor Union Act... "Weakening National Economic Competitiveness"
Legislation on Flexible Working Hours and Expanded Labor-Management Choice Supports Industrial Competitiveness
KEF Holds 'Key Companies HR and Labor Management Executives Meeting'

There are claims that the amendment to the Labor Union Act will exacerbate confusion in labor-management relations and weaken the national economy's competitiveness.

The Korea Employers Federation (KEF) announced on the 15th that it held a 'Senior HR and Labor Management Officers Meeting of Major Companies' at the Lotte Hotel in Sogong-dong, Seoul, with participation from senior HR and labor management officers of major companies. At the meeting, the officers shared their opinions on the recent government announcement of the working hours system reform plan and the legislative issues regarding the Labor Union Act amendment currently under discussion in the National Assembly.

The officers anticipated that the amendments to Articles 2 and 3 of the Labor Union Act would lead to the collapse of labor-management relations and significantly reduce competitiveness not only for companies but also for the entire national economy by discouraging investment. They expressed serious concerns about the impact of expanding the scope of employers. They pointed out that if the concept of employer is changed as in the amendment, whether there is 'substantial and specific control' would inevitably involve subjective judgment by judges based on various factual circumstances.

The Korea Employers Federation announced on the 15th that it held the "Major Companies HR and Labor Officers Meeting" at Lotte Hotel in Sogong-dong, Seoul, with HR and labor executives from major companies participating. The photo shows Lee Dong-geun, the full-time vice chairman of the Korea Employers Federation (center), speaking at the meeting. Photo by Korea Employers Federation

Lee Dong-geun, the full-time vice chairman of KEF, stated, "In the National Assembly, deliberations are underway on bills such as the amendments to Articles 2 and 3 of the Labor Union Act, which are feared to amplify confusion in labor-management relations and imbalance of power between labor and management," adding, "KEF plans to officially announce the business community's 'Labor Reform Plan'."

One company executive expressed concern, saying, "The court will have to determine on a case-by-case basis whether a company is a party to negotiations, and criminal penalties will be imposed as well," adding, "This excessively increases legal risks, which will inevitably lead to a reduction in domestic investment."

Company executives worried that due to the expansion of the scope of labor disputes, there will be a tendency to resolve issues that should be settled by court decisions through collective actions. Another company executive pointed out, "Not only will labor disputes surge, but the duration of disputes will inevitably be prolonged," concluding, "Ultimately, labor-management relations will collapse."

However, company executives forecast that the government's working hours system reform plan will help enhance industrial competitiveness and job creation. They explained that the government plan could be utilized in cases requiring concentrated work, such as increased order volumes or sudden surges in workload, without increasing the total working hours.

Vice Chairman Lee said, "The government's announced working hours system reform plan is expected to serve as a catalyst for securing flexibility in working hours operation, enhancing companies' responsiveness to rapidly changing industrial environments, and laying the foundation for job creation."

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