Trends in Politics and National Assembly

1. Government to revise labor laws and strengthen labor inspections

As the government plans to strengthen labor inspections through stricter supervision and control, it is feared that this will exacerbate already unfavorable business conditions. The Ministry of Employment & Labor (MOEL) plans to investigate companies hiring many temporary workers as to whether there has been any discrimination in bonuses or other benefits based on employment status. According to the ‘Manual for Determination of Worker Dispatch’ released on 7 December, the MOEL will intensively monitor companies for illegal dispatch in the automotive, shipbuilding, steel, electronics, retail and hotel industries, and order such employers to directly hire any illegally dispatched workers.

The MOEL is also discussing how to reform labor-management councils and the Economic & Social Development Commission.

To strengthen labor-management councils, the MOEL will revise the ‘Act on the Promotion of Worker Participation & Cooperation’ to allow dispatched workers to take part in labor-management councils. According to the MOEL’s plans, worker representatives of labor-management councils shall be elected by workers, while the in-house representative for the subcontract workers can participate in the primary contractor’s labor-management councils. Also, consultation, resolution and reporting of labor-management council matters shall be integrated and the provision requiring the councils to hold meetings every three months will be revised so that this is more flexible.

The Economic & Social Development Commission is seeking ways to activate social dialogue by creating new committees and diversifying its agendas and participants. Non-regular workers, SMEs and other social partners will join this commission and the number of plenary committee members will increase from the current 10.

<Table 1> MOEL Plans for Major Labor Issues

2. Opposition parties intervening in labor issues at workplace level

The main opposition Democratic United Party (DUP) launched a Special Committee on Labor Relations at its general meeting on December 31. In line with its plans for the first half of 2013, the Special Committee began onsite investigations into more than 20 workplaces. While the ruling Saenuri Party will refrain from intervening in labor issues, there are disagreements within the Party regarding policy direction as some lawmakers in the Environment & Labor Committee are calling for parliamentary investigation into Ssangyong Motor.

<Table 2> Labor Relations Committee Plans for First Half of 2013

On January 15, the DUP’s Special Committee on Labor Relations visited Cort/Cor-tek and Daewoo Motors Sales Corporation, aiming to politicize labor relations at these companies. Meanwhile, labor, management, civic groups and the government established a committee on January 17 in order to normalize Ssangyong Motor’s operations and stop the parliamentary investigation. The committee collected signatures for petition against parliamentary investigation until January 21. The next day, the 22nd, the committee held a press conference and presented its petition to the Saenuri Party and the DUP. Meanwhile, on January 10, Ssangyong Motor’s management and union leaders agreed to reinstate 455 workers who have been on unpaid leave, who will return to work on March 1. Other details will be discussed by early February.

<Table 3> Plans for On-site Investigations by DUP’s Special Committee on Labor Relations

Even though the parliamentary session is over on January 18, the National Assembly’s Environment & Labor Committee held a plenary meeting to discuss current labor issues.

<Table 4> Result of Environment & Labor Committee Meetings on Major Labor Issues

Previously, the ruling and opposition parties agreed to open a special session in January; however, due to different positions on current labor issues (including parliamentary investigation of Ssangyong Motor), this has been postponed.