KCCI: "Labor Market Reform Helps Job Creation"

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[Asia Economy Reporter Yoo Hyun-seok] The Korea Employers Federation (KEF) issued a statement on the 23rd regarding the Ministry of Employment and Labor's announced directions for labor market reform, including improvements to the working hours system and wage structure reform, stating that it believes these measures "can help overcome the economic crisis and create jobs."

However, KEF said, "In the process of concretizing improvements to the working hours system and wage structure reform, measures to enhance the utilization of the system in the industrial field, such as improving the requirements for introducing flexible working hours and easing procedures for changing employment rules, need to be supplemented."

At the same time, KEF emphasized the urgency of reforming regulations on fixed-term and dispatched workers. KEF stated, "To respond to changes in the industrial structure, it is necessary to resolve employment rigidity," and added, "Reforms on unclear dismissal legislation, which burdens companies' new hiring, and regulations on fixed-term and dispatched workers, which restrict workforce utilization, must be urgently implemented."

KEF also noted, "The recent announcement by the Ministry of Employment and Labor did not include improvements to laws and systems for advancing labor-management relations, such as prohibiting replacement labor, criminal penalties for unfair labor practices, and workplace occupation, which cause an imbalance of power in our labor relations," and explained, "Going forward, the Ministry of Employment and Labor should promptly promote allowing replacement labor, abolishing criminal penalties for unfair labor practices, and completely banning workplace occupation in line with global standards."

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