President Roh: Preferential Treatment for Unions Will Cease

President Roh Moo-hyun said Friday that “from the 1960s to the 1980s, the government offered the benefit for union officials to demand wages, making it difficult for companies to lay off workers thereby not recognizing the autonomous rights of the individual worker. The practice of compensating workers has been handed down in this manner until recently. Now however, is the time to stop such preferential treatment for labor groups because they should have the autonomous right to freely pursue what they want.”

The president met with the owner and chief editor of Forbes, a U.S. financial magazine, at Cheong Wa Dae this morning. At the meeting, President Roh said that “the Korean labor market falls short of international standards in many aspects, but within two or three years, progress will have been made.”

The president’s remarks are included in a press release distributed by presidential vice spokesperson Lee Ji-hyun who was on hand at a meeting between the president and the Forbes` owner.

It is expected that the government`s labor policy will face dramatic changes down the road in that the president’s remarks can be interpreted that the government will vigorously push ahead with the labor polices of implementing “No work, No pay” principle, limiting full-time union workers` wages, and considering more flexible working hours. Among them, limits on wages of full-time union workers will be implemented from 2007 in accordance with a deal signed by the Tripartite Commission of representatives from business, labor and the government during the Kim Dae-jung administration.

“I am well aware that foreign investors are most concerned over industrial relations in Korea. According to media reports, it seems that labor-management relations have worsened and the government has caused more trouble to Korean businesses by taking the side of labor unions. However, that is not the case. In fact, the number of nationwide workplaces that went on strike reduced in half compared to last year and the number of days of temporary shutdowns caused by industrial disputes decreased by one third from that of last year,” the president said.

After the press briefing material was released, a flood of questions poured in over the real intention of the remarks. Thirty minutes after the press release, presidential vice spokesperson Lee explained that “the president simply took some examples to be improved to meet the international standards. Therefore, the president`s remarks should not be regarded as a sign for dramatic change in the government`s labor polices. These issues should be thoroughly reviewed by the Tripartite Commission.”

Prior to his meeting with the owner of Forbes Magazine, the president said at a meeting of U.S. representatives of a Korea-American business group, “The Korean government clearly recognizes that an investment guarantee agreement between South Korea and the U.S. is vital to the South Korean economy. Considering the importance of such an agreement, I am actively discussing the issue with aides and government cabinet members.”

Jeong-Hun Kim jnghn@donga.com