Five Korean Business Groups Call for Labor Policy Review

On April 9, five business organizations, including the Korea Employers Federation and the Federation of Korean Industries, called for a re-examination of labor policies, claiming that, “The recent government labor policies have only represented the interests of laborers, which have discouraged corporate investment. They are also negatively affecting the creation of more jobs.”

On this day, the five business organizations got together for a ‘Five Business Organizations’ Emergency Vice-Chairman’s Meeting’ at the JW Marriott Hotel in Seocho-gu, Seoul, where they discussed the course of the government’s labor policy, and afterwards they held a briefing.

Vice-Chairman of the Korea Employers Federation Kim Young-bae said, “We have waited for the government to show understanding regarding the situation that corporations are placed in, but it has not at all been taken into consideration.” He added, “Last month, several laws were introduced which fully accommodated the opinions of laborers, so we agreed that the opinions of businesses must also be made clear.”

Businesses have expressed great displeasure regarding the ‘non-regular workers’ fact-finding committee’ which was established by a recent agreement between the government and laborers, arguing that the process completely disregarded the opinion of the main party concerned: the employers. They also objected to the formation of a task force to discuss the issue of ensuring the three labor rights for special employment jobs, such as workbook tutors, insurance recruiters, and golf course caddies. Businesses were also concerned with the bill banning employment age discrimination that entered the legislative process in March, which they claim will extend the retirement age and cause disorder in the employment hierarchy of companies.

Laborers strongly opposed this, arguing that, “Employers are attempting to violate the lawful rights of employees.” The Federation of Korean Trade Unions announced a statement criticizing “the deplorable attitude which is interested only in immediate benefits while denying measures for economic polarization, low birthrates and the aged.” Korean Confederation of Trade Union spokesperson Woo Moon-sook said, “As the bills for protection of non-regular employees and improvement of labor rights loom, employee organizations are pressuring the government.” She added, “Opposing the labor policies that are currently under consideration is seriously damaging the lawful rights of employees.”

sanhkim@donga.com