1. Pending labor bills in Environment & Labor Committee
Currently, a total of 123 labor bills have been presented in the National Assembly’s Environment & Labor Committee. Of these, 3 bills have passed in the National Assembly’s plenary session on November 22. Four bills including the Act on the Protection, etc. of. Fixed-term and Part-time Employees, Act on the Protection, etc., of Dispatched Workers, Special Act on the Promotion of Youth Employment and Employment Insurance Act have passed the National Assembly and submitted to the Legislation & Judiciary Committee. Meanwhile, issues regarding work hour reduction and retirement age extension shall be further discussed after the presidential election.
[Table 1] Major Labor Laws, Position and Outlook
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Non-regular work
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– Ruling Saenuri Party: Decrease discrimination against non-regular workers.
– DUP: Reduce the use of non-regular workers.
– Outlook: Despite the differences, possibility exists that the two parties would reach an agreement before the elections.
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Minimum wage
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– DUP: Push for legislation to increase minimum wage to a maximum of 50% of the average wage and include inflation rate in indicators determining minimum wage.
– Ruling Saenuri Party and the government: negative on the above new legislation on minimum wage.
– Outlook: The DUP is confident of new legislation on minimum wage.
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Mandatory youth employment quota / Extension of retirement age to 60
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– While the DUP and ruling Saenuri Party agree on introduction of a mandatory youth employment quota, the government plans to present alternative measures to the Legislative Review Subcommittee and has a negative view of the new regulation.
– Outlook: Bill on extending retirement age to 60 is likely to pass the National Assembly before the presidential election.
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Reduction of working hours
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– Currently, both the Saenuri and opposition parties have proposed bills to reduce working hours. The government also plans to present a related bill in December based on tripartite committee discussions.
– Outlook: possible for the Saenuri bills to pass the National Assembly before the presidential election.
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2. Pro-labor aspect of presidential candidates
Presidential election camps are attempting to expand their influence by attracting labor activists. With a growing number of pro-labor election pledges, there are increasing worries that the burden on companies will increase.
[Table 2] Presidential Candidates Seeking Support from Labor
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Park Guen-hye
(Saenuri Party)
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Moon Jae-in
(Democratic United Party)
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In communication with the FKTU and civic groups through the Saenuri Party’s Labor Committee
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In communication with two umbrella unions (FKTU, KCTU) and progressive civic groups
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As more labor activists join presidential election camps, candidates are announcing pro-labor pledges. Seeing the presidential election campaigns as opportunity, labor is expected to increase their demands.
Ms. Park visited the FKTU headquarters on 22 October to restore relations and pledged to ▲ resolve the wage issue of full-time union officials dispatched to umbrella unions ▲ take supplementary measures regarding the mandatory single bargaining channel under the multiple union system ▲ improve the time-off system through the Time-off System Deliberation Committee ▲ enact more laws on non-regular workers and in-house subcontracting, etc. Mr. Moon also visited several umbrella unions and workplaces, seeking support from liberal groups.
Labor will decide which candidates to support in this presidential race after reviewing each candidate’s pledges on labor issues. It is expected that labor will step up its political pressure as the elections get closer.
[Table 3] Labor Demands for Presidential Candidates
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FKTU
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– Allow wage payment for full-time union officials
– Ensure workers’ rights
– Reduce use of non-regular workers
– Reform minimum wage system
– Economic democratization
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KCTU
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– Enact bills on atypical workers and industrial accidents
– Prohibit dismissals for redundancy
– Revise the Trade Union & Labor Relations Adjustment Act
– Reduce working hours
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