Panel agrees to 40-hour work week

With the Tripartite Commission of labor, management and government agreeing to a 40-hour work week Monday, the revision to the Labor Laws will be submitted to the National Assembly and could lead to an implementation as early as the second half of next year, heralding a five-day work week for workers in certain sectors of the Korean economy.

Following the agreement on the 40-hour work week, the Tripartite Commission's special committee for the reduction of weekly work hours will continue to discuss the questions of holidays, overtime and a detailed schedule of implementation. The commission will discuss and decide in conjunction with related agencies for five-day school and financial institutions.

The plans for reduction in per-week working hours most likely will follow in large part the gradual implementation stages previously adopted by Japan. Although the labor camp had called for immediate and comprehensive implementation in the past, it has agreed to "in consideration of type and size of the businesses" clause.

Japan revised its labor laws in 1987, shortening the weekly working hours from 48 to 40 hours. However, Japan did so in three years of graduated steps by industry type, and by 1997, completed the jumps 48-46-44-40. With two years from 1997 to 1999 designated as a period of observation and guidance, the actual implementation took more than 11 years. The white-collar workers enjoyed the cut in working-hours first with a 40-hour work in 1994. Manufacturing and construction were the last with 44-hour weeks allowed until 1997.

"Just as every country necessitated a gradual implementation process, we shall also differentiate according to industry type and size," a source at the Ministry of Labor said. "However, as we have started on the process later than Japan did, we will not take as long as they did."

It has been revealed that the Ministry Labor is considering a five-year period of implementation but is not looking at a graduated step as a 42-hour work week.

Another area of contention had been the reduction of hours worked. The proposed reduction of actual annual work hours at 2,000 hours met with fierce opposition by the management camp until the last minute prior to the agreement.

The average Korean works 2,497 hours annually, and for workers in manufacturing the annual work hours recorded 2,608. Japan in 1993, in its bid to decrease the annual work-hours, lay groundwork for over-time pay from 25% to 50%. Also, during the implementation period, the Japanese government subsidized 250,000 to 3.75 million yen for companies that adopted the shortened work week. Through such measures, Japan successfully reduced the annual working hours to 1,889.

"The overtime rate needs to be lower in order to prevent workers from working beyond the lawful hours," the management representatives said, calling for a reduction of overtime pay from 50% to 25%. The labor camp replied, "Only such high overtime rate can prevent businesses from requiring work overtime."

Paid monthly leave such as sick days also likely will be revised. As the agreement seeks to be in step with international standards, many experts have expressed their opinions that it signified the end to the paid monthly leave.

In addition, the current 20-days paid sick leave will be adjusted in accordance with the standard set by the International Labor Organization, which calls for 18 days paid sick leave. However, the question of the paid summer vacation will not be part of the discussion for the commission.

Kim Joon-Seok kjs359@donga.com