The Two Major Trade Unions "Wage System Reform is a Deterioration... Concerns Over Worsening Labor Conditions"

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As the Yoon Suk-yeol administration announced its direction for labor reform, labor organizations criticized it as closer to deterioration than reform. They are expected to engage in struggles with the stance of blocking labor reform.

On the 23rd, when Lee Jeong-sik, Minister of Employment and Labor, announced the direction of labor reform focusing on 'expansion of the job performance pay system and management of monthly extended working hours,' the Korean Confederation of Trade Unions (KCTU) and the Federation of Korean Trade Unions (FKTU) expressed concerns that it would ultimately lead to harm for workers. They warned that, like the wage peak system ruled invalid by the Supreme Court last month, it could cut workers' wages and force long working hours.

The KCTU strongly criticized the Yoon administration's labor reform. On the same day, the KCTU stated in a press release, "The announcement by the Ministry of Employment and Labor shows no conviction or expertise as the minister in charge of labor," adding, "As the Minister of Employment and Labor, a policy direction addressing issues such as wage increases, welfare expansion, and measures for irregular workers during a period of soaring prices should have been presented."

On the 20th, the KCTU-affiliated Korean Labor Institute called the Yoon administration's labor policy a 'labor deterioration,' explaining, "It is a policy that deepens and expands the neoliberal trend of labor flexibility," and "Its essence is to strengthen employers' discretion over working hours, undermining the regulatory system on long working hours and seriously threatening workers' health rights."

They also forecast strong struggles. The day before, the KCTU held a 'Policy Diagnosis Forum on the Yoon Suk-yeol Government's Inauguration' and proposed strengthening solidarity among low-wage workers, small business owners, and self-employed individuals. Lee Jeong-hee, KCTU Policy Director, said, "The KCTU is a strong organization capable of fighting against the Yoon government," and added, "We must broadly organize solidarity groups to expand universal labor rights and strengthen publicness and respond jointly." The KCTU has announced a 'National Workers' Rally to Prevent Labor Deterioration and Publicness Retreat' in downtown Seoul on July 2.

The FKTU also reacted strongly. On the 16th, the FKTU stated in a commentary, "The Yoon government's economic policy is a carbon copy of the Lee Myung-bak (MB) administration 15 years ago," and added, "In our country, where unionization is only 12%, policies such as the selective working hours system will be used as means to enforce concentrated long working hours."

Furthermore, they urged the government to take responsibility for past labor policy failures. An FKTU official said, "The government claims that the selective working hours system and flexible working hours system are not being used, but this is the result of abuse of the special extended working hours approval system," and added, "Before labor reform, the government must first acknowledge its failure in labor policy."

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