5-Day Working System To Be Enforced Next Year for Big Companies

The government has decided to usher in the 5-day working schedule in several phases. The government has been preparing a bill under which the number of working hours and days per week will be shortened so that workers could work 5 days a week. Thus, under the new bill, the new working schedule will first be applied to financial and insurance industries, and companies in the public sector or having more than 1,000 employees.

But, both of the employers and the employees immediately expressed their opposition to the bill. Moreover, the Grand National Party, which dominates more than the majority in the Parliament, also opposes the bill. Thus, it is not clear whether the bill would be passed in the Parliament and, if passed, it would be what the government has intended.

Ministry of Labor (MOL) announced on August 16 that, based on the conclusions reached through the committee activities, it would mandate the 5-day working schedule step by step. According to the MOL, it will be implemented by July 1 of 2003 in the financial and insurance industries, and in companies in the public sector or having more than 1,000 employees; by the same date in 2004, in companies having 300 employees or more; by July 1, 2005, in companies having 50 employees or more; and by July 1, 2006, in companies having 20 employees or more.

The MOL, however, did not make any conclusion on companies having less than 20 employees. It decided to leave to determination by the President. In addition, it did not make a final decision concerning the workers in the educational industry. It will conduct more discussions with other Ministries to balance with the schedule’s introduction into the companies having less than 20 employees.

But the government plan does not prohibit an earlier introduction by a company as long as the management and the union agree.

But the MOL has not yet determined the future of the current perks workers are now receiving. Thus, it is not yet decided the scope of the paid holidays (including the number of monthly and yearly holidays) and the method for calculating those holidays.

The MOL plans to conclude those issues by the end of this month after discussions joined by employers, employees and relevant ministries.

In the meanwhile, the employers contend that the new working schedule be ushered, starting in January of 2005, in companies having 1,000 employees or more. For the rest of companies, they also argue, the introduction period should be extended to January of 2012. But their plan insists on an unlimited extension for companies with less than 10 workers.

On the contrary, Federation of Korean Trade Unions urges, “It should be immediately implemented in the financial and insurance industries, and in companies in the public sector and having more than 1,000 employees.” Koran Confederation of Trade Union also insists, “The new working schedule be introduced in all kinds of companies within 2-3 years. Modification also should be made so that companies with less than 20 workers will adopt the schedule earlier.”

Jin Lee leej@donga.com