Illegal Dispatch Labor Inspection on the Way

The government decided to actively inhibit illegal dispatch labor by changing law regulations so that labor inspectors can exercise judicial police authority for dispatch laborers.

The Ministry of Labor said yesterday, “We cannot allow any more illegal dispatch labor. We will alter the law so that labor inspectors can exercise judicial police power over illegal dispatch labor beginning next year.”

Currently, labor inspectors can investigate and order to be prosecuted those who break one of the nine labor related laws including the basic labor law, the minimum wage law, and low rank statutes.

The government’s strong will to eradicate illegal dispatch labor is speculated to have quite an effect on the chemical, steel, electric and electronic industries.

Some examples of illegal activities are: regular and dispatch laborers doing the same jobs at the same place, and illegal use of power by the employer by disguising a dispatched laborer as a contracted worker even after two years of work instead of making such a worker a regular worker.

Wage exploitation is another big problem. For example, even though business proprietors allotted dispatch businessmen 1,500,000 won per worker, only 800-900,000 won is actually given to the dispatched labors. Dispatch business proprietors have just been gathering profits without saving up for retirement money. There are times when dispatch companies flood into the market and cause dumping bids.

The Tripartite Commission Republic of Korea said, “Regular workers do not protest against the illegal dispatch system because dispatched workers are often the first sacrifices in times of structure adjustment.”

The government’s solution

The government is planning to increase the number of labor inspectors by 140 and strengthen illegal labor inspections. They also plan to practice improved law where dispatch labor requirements and punishment regulations are strengthened starting later this year.

The government’s inspections are speculated to stop the tradition of illegal dispatch where laborers looking for jobs and companies looking for labor flexibility at a low cost are in agreement.

However, Lee Dong-eung of the Korea Employers Federation said, “If the government goes ahead with stiff and one-way standards without taking into account the industry’s working environment and habits, production inefficiency is inevitable.”

Jong-Hoon Lee taylor55@donga.com