Trends in the National Assembly and Government

1.  ELC launches its Subcommittee on the Promotion of Tripartite Dialogue

On 14th February, the Environment & Labor Committee (ELC) of the National Assembly launched its Subcommittee on the Promotion of Tripartite Dialogue (hereinafter “the Subcommittee”) and selected the tripartite representatives who would be participating in the Subcommittee meetings. The purpose of the Subcommittee is to resume the social dialogue among the tripartite members, which had been halted due to the deepening conflicts between labor and government, and also to re-vitalize tripartite talks on sensitive labor issues which could lead to social conflict (such as ordinary wage), reduction of working hours and labor-management relations in the public sector, and follow-up measures concerning extension of retirement age.

The Subcommittee is composed of 4 ELC members (2 each from the ruling party and opposition party) and includes the chairperson of the ELC. Other tripartite representatives participating in the Subcommittee meetings are the Minister of Employment & Labor, the Chairman of the KEF, the Chairman of K-biz, the President of the FKTU and the President of the KCTU. The Subcommittee is scheduled to operate until 15th April.

 

 Action Plan of the Subcommittee

February 21st (Friday):
Finalization of Subcommittee composition (ELC Plenary)
In February:
First Subcommittee and tripartite meetings
Three weeks up until
the 3rd week of March:
Development of agenda and keynote presentations for each participating body
Two weeks up until the
1st week of April:
Discussion on improving labor-management relations (public hearings, seminars, meetings of experts etc.)
In 2nd week of April:
Reaching agreement on relevant issues

2. Government focuses on tripartite agreement for job creation and reform of the wage system
In its report to the President, the Ministry of Employment & Labor (MOEL) put highest priority on job creation and improvement of job quality. As part of its job creation platform, the MOEL is planning to expand support for employment of youth, women and the elderly, and reduction of working hours.


  Job Creation Measures for Youth, Women &
Elderly
Main Points
Youth
∙ Innovate vocational training and education, promote capability-oriented recruitment, improve HRM
∙ Improve SME working environments to attract young people
– Introduce retirement pension system, promote employee stock ownership plans, expand the scope of employment incentive beneficiaries
∙ Expand youth employment by increasing employment quotas at public institutions
Women
∙ Support career management for female workers
– Promote the use of paternity leave
(If both parents use childcare leave, the 2nd person using the childcare leave should be paid an amount equal to 100% of the ordinary wage for the first month of the childcare benefit)
– Reduce working hours during pregnancy and childcare
(Extend the period for working hour reduction from 1 year to 2 years)
∙ Customize support for women seeking jobs
∙ Promote flexible working hours and part-time employment
– Guidance and monitoring of workplaces for protection of
maternity
– Improve subsidies for companies hiring new part-time
workers
Elderly
∙ Support for introduction of compulsory retirement age of 60
– Expand incentives for workplaces which introduced retirement at age 60 by linking to wage system reform
* Maximum $5,606 USD (₩6 million KRW) → $6,727 (₩7.2 million KRW) ~ $7,849 (₩8.4 million KRW)
– Distribute wage reform manuals and models according to industry
Low-income Groups
∙ Strengthen the guarantee of basic working conditions
– Strengthen sanctions in case of violating minimum wage regulations
– Strengthen penalties for habitual and willful delays in wage payment
(Apply penalties to employers when they bid on public projects if they habitually delay payment of wages; levy fines equal to the overdue wages in addition to payment of the overdue wage)
∙ Improve employment practices for non-regular workers
– Enforce disclosure of information on employment types for large enterprises
– Strengthen guidance, monitoring on workplaces hiring many non-regular workers
 (In particular, introduction of punitive monetary compensation for willful and habitual discrimination)
– Introduce protection for domestic and independent workers
In order to promote job creation through the reduction of working hours, it is planned to revise laws to include holiday work in statutory overtime working hours and strengthen inspection against long working hours.

Currently, the MOEL is planning to push ahead with tripartite agreement in order to solve the pending labor issues such as wages and working hours. By restoring the channel for tripartite communication during the 1st half of this year, the Ministry is hoping to conclude a package deal among tripartite members including wage reform, ordinary wage, reduction of working hours, and extension of the retirement age. For this package deal, the Ministry is expected to try to bring the Federation of Korean Trade Unions back to the Economic & Social Development Commission.

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