1. Government to focus on improving working conditions and employment-to-population ratio
The government plans to revise laws and systems and strengthening labor inspections over non-regular workers, in-house subcontract workers and working hours.
Plans are also being made to boost youth employment by temporarily implementing a mandatory youth employment quota (2014~2016) in public sector and employment quota for youth from local areas.
The Ministry of Employment & Labor (MOEL) plans to revise the ‘Act on the Promotion of Worker Participation & Cooperation’ to allow dispatched workers to take part in the primary contractor’s labor-management councils. However, participation of in-house and dispatched workers in the labor-management council could pass the responsibility for improving working conditions of in-house subcontract workers onto primary contractors.
Meanwhile, composition of the Tripartite Commission is expected to change as the new government plans to reform presidential councils. In particular, participation of non-regular workers and in-house subcontract workers in social dialogue may create confusion.
<Table 1> MOEL Policy on Major Labor Issues
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Non-regular workers
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ㆍBan discrimination in bonuses
ㆍIntroduce Public Disclosure of Employment Status and Punitive Compensation
ㆍEstablish employment stability guidelines for non-regular workers
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⇒ Concentrate labor inspections on workplaces using non-regular workers
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In-house subcontract workers
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ㆍIncrease responsibility of primary contractors
– Joint responsibility for employment, working conditions and payment of wages
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⇒ Conduct special labor inspections of illegal dispatch (illegally-hired dispatch workers to be directly hired)
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Working hours & job creation
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ㆍInclude work on holidays in ‘extended work’ (to be applied gradually according to company size)
ㆍ Decrease the list of sectors exempted from statutory working hours (26 → 10 sectors)
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⇒ Conduct regular labor inspections on auto, metal, food and service industries
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2. Bills discussed by the National Assembly’s Environment & Labor Committee
Currently, a total of 145 labor bills have been presented in the National Assembly’s Environment & Labor Committee, with 64 of the pending in its Subcommittee for Legislative Review.
<Table 5> Major Bills Pending in the Environment & Labor Committee
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Issue
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Election Promise by President
Park Geun-Hye
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Major Details
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Ruling Saenuri Party
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Opposition Democratic United Party
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Non-regular workers
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ㆍ Recognize union’s right to request correction of discrimination
ㆍ Introduce punitive monetary compensation system
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Identical to President’s
election promise
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ㆍ Recognize union’s right to request correction of discrimination
ㆍ Restrict the use of non-regular workers
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Subcontract workers
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ㆍ Establish the Act on the Protection of In-house Subcontract Workers
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Identical to President’s
election promise
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ㆍ Recognize illegally dispatched workers as directly employed workers
ㆍ Legislate criteria of distinguishing dispatch and subcontract employment
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ㆍ Hold special labor inspections on enterprises judged to be employing illegal dispatch workers
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–
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Extension of retirement age
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ㆍ Fix the statutory retirement age to 60 in connection with wage peak system
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Identical to President’s
election promise
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ㆍ Fix the statutory retirement age to 60
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Shorter
working hours
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ㆍ Include holiday work in ‘extended work’
ㆍ Reduce the list of business types exempted from the legal limits on overtime
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Identical to President’s
election promise
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ㆍ Include holiday work in ‘extended work’
ㆍ Abolish the list of business types exempted from the legal limits on overtime
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–
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ㆍ Extend application of flexible working hour system
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ㆍ Abolish flexible working hour system
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Dismissal for managerial reasons
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ㆍ Strengthen obligations for management to take measures to avoid dismissal
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–
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ㆍ Strengthen requirement for dismissal for managerial reasons
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Atypical workers
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ㆍ Expand social security net for atypical workers by redesigning the Industrial Accident Compensation Insurance and Employment Insurance Programs
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–
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ㆍ Legally recognize atypical workers as employees under labor laws
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Work-life balance
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ㆍ Allow childcare leave for female workers with children under a broader age range
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Identical to President’s
election promise
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ㆍ Allow childcare leave for female workers with children of a broader age range
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ㆍ Introduce a ‘Month for Fathers’
ㆍ Allow shorter working hours during pregnancy
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–
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