The National Assembly’s Environment & Labor Committee conducted parliamentary inspections of the Ministry of Employment & Labor on October 8. During the inspection, members of the opposition parties consistently raised questions related to the massive layoffs at Ssangyong Motors based on allegations made by labor groups. In particular, opposition party members urged more investment from the Mahindra Group to reinstate workers who were laid off or on unpaid leave. They also claimed that the Blue House (Cheong Wa Dae), the Ministry of Employment & Labor and the Korea Employers Federation supported Chang-jo Consulting Firm in its “trade union destruction” activities.Opposition party members also demanded that Hyundai Motors Company should directly hire subcontract workers as Hyundai Motors Company continued to consult on this issue with its trade union. Labor and management of Hyundai Motors have agreed to continue negotiations regarding in-house subcontract workers through a special council. Management has requested several times that a special council meeting be held, but this has not occurred due to the elections for trade union representatives.
Pro-labor activities by politicians are expected to increase trade union expectations, something which will worsen labor relations at the enterprise level. Meanwhile, 2 members of in-house subcontract workers union of Hyundai Motors under the KMWU climbed a 50-meter electrical tower on October 17 to begin a protest. They are demanding regular contracts be offered to all in-house subcontracting employees, a branch of which also went on strike on October 18.
Pro-labor pledges by presidential candidates expected to burden enterprises
On October 18, the DUP presidential candidate, Mr. Moon Jae-in, launched a labor committee within his election camp. This labor committee will be led by the former president of the FKTU, Mr. Lee Yong-deuk, with 219 pro-labor personnel taking part. At the launching ceremony for the labor committee, Mr. Moon announced a number of labor-friendly policies.
[Table 1] Major Labor Policy Pledges by Moon Jae-in (DUP)
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Subject
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Feature
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Layoffs
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Tighten requirements and procedures for layoffs; increase efforts required by enterprises to avoid layoffs
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Minimum wage
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Increase minimum wage to 50% of average wage by 2017
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Working hours
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Strictly observe statutory working hours
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Non-regular workers
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Reduce the number of non-regular workers by 50% within a 5-year term, starting with the public sector
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On October 21, independent presidential candidate Mr. Ahn Cheol-soo announced 5 major employment & labor strategies featuring a “virtuous cycle” of welfare – jobs – growth.
[Table 2] 5 Major Employment & Labor Strategies by Ahn Cheol-soo
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Strategies
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Details
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Social consensus on jobs-welfare-economy
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Strengthen the role of the Tripartite Commission
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Job creation
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Reduce working hours; extend retirement age to 60 (with wage peak system) and gradually abolish age limit; implement assistance program for the unemployed; expand benefits for childcare leave
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Job security for small business owners & non-regular workers
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Establish principle on equal pay for equal work; legislate Framework Act on Equal Employment; adopt compensation system for discrimination in employment; allow atypical workers to subscribe to Industrial Accident Compensation Insurance; improve standards for acceptance of occupational diseases; gradually increase minimum wage to 50% of average wage
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Jobs for youth
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Business associations to urge private firms to hire more youth
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Harmonious industrial relations
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Provide outplacement services for laid-off workers and introduce a performance-based wage system
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Meanwhile, the ruling party candidate, Park Geun-hye, is seeking to gain more support from the FKTU through pro-Saenuri Party groups.