Other Labor Issues

1. Roadmap to 70% Employment Rate

The Minister of Employment & Labor Phang Ha-nam, chairman of the Korea Employers Federation Lee Hee-beom, and president of the Federation of Korean Trade Unions Moon Jin-kook concluded on May 30 this year a Tripartite Agreement to Achieve a 70% Employment Rate. ’ At the end of April, the government and representatives from labor and business, established a ‘Tripartite Representative Council’ as part of this goal to allay national anxiety regarding employment issues. They also drew up the final conclusion of the job pact, composed of a preamble and 60 articles, after high-level and working-level discussions in May.

<Table 1> Major Points in the Job Pact

Meanwhile, the Ministry of Employment and Labor (MOEL) announced the ’Roadmap to Achieve a 70% Employment Rate’ on June 4, with which MOEL recommends the direction of employment policy for the next 5 years. The roadmap contains ① job creation, ② improvement of working hours, ③ Encouraging participation of women and youth in the labor market, and ④ social solidarity and responsibility.
2. Reduction of working hours
Holiday working hours seem to be included in statutory overtime working hours. In this context, a maximum of 12 overtime working hours per week is allowed. Related issues and measures to minimize the additional burden on workplaces would be discussed by the tripartite members. At the moment, the revision bill on the Labor Standards Act, which is designed to include holiday working hours in statutory overtime working hours, reduce the types of industries exempted from statutory work hours, and the banning of the Blanket Wage System etc., is pending at the National Assembly.
In addition, the 26 industries that presently are exempted from statutory work hours will be decreased to 10 and a working-hour ceiling would be determined. Moreover, overtime work by office workers is expected to decrease through improving the Blanket Wage System. Business plans to recommend that the government introduce a White-collar Exemption similar to the U.S.

Special health checks would be enhanced and the scope of approving cardiovascular diseases as an occupational disease would be expanded. Thus, special health checks for workers will be required in workplaces with many workers who work overtime. The criteria to determine overwork would be expanded for workers who are diagnosed with cardiovascular-related diseases.
3. Increase in availability of part-time work

In order to spread part-time work, the government is planning to lead in the development of decent part-time jobs in the public sector first, with a gradual expansion of part-time jobs into the private sector. Although the definition of a decent part-time job has not yet been clarified, MOEL is currently having discussions on criteria for jobs, such as a 15~30 hour workweek, a guaranteed retirement age, wages which are 30% or more higher than the minimum wage, etc. In the second half of 2013, the government will focus on special labor inspections to expose companies with unfair discrimination against part-time workers, those that have not joined the social insurance program, or are not paying minimum wage, etc.
4. Non-regular and in-house subcontracted workers

It seems that dispatching workers aged 55 years and older, along with highly paid professionals, and sending workers to agricultural and fishing villages will be allowed. The current regulation on dispatched workers, which prohibits older workers being dispatch employees, and also prohibits sending workers to agricultural and fishing villages is being considered for deregulation. Also, the ‘Guideline for Employment Stability for Non-regular Workers’, which includes criteria to determine continuous duties, would require workers to be converted to regular workers, and their working conditions after they become regular workers, is expected to be prepared. Punitive compensation against willful or repetitive discrimination is also expected to be introduced. The revision bills on the ‘Act on the Protection, etc. of Dispatched Workers,’ and the ‘Act on the Protection, etc. of Fixed-Term and Part-time Employees’ are currently pending at the National Assembly.

Also, an act to protect in-house subcontract workers is to be prepared and labor inspections are to be enhanced, especially in workplaces where workers are illegally dispatched. Measures to extend the coverage of unemployment insurance and occupational health & safety insurance to independent workers are also pending at the National Assembly.
5. More protection for women and old workers

As a measure to reinforce protection for female workers, the age of children whose mothers will be permitted to take childcare leave will be extended from 6 to 9 years of age. Mandatory childcare leave (allowing mothers to use a 1-year period of childcare leave immediately after 90 days of maternity leave unless otherwise prohibited), and the reduction of working hours during the childcare period apart from childcare leave will also be implemented.

(Current limit): Childcare leave and reduced working hours during the childcare period up to a maximum of 1 year
(New limit): 1 year period of childcare leave and reduced working hours during the childcare period up to a maximum of 2 years

The government is also planning intensive labor inspections of workplaces where many female workers have resigned due to pregnancy • childbirth.

As it stands right now, the right of older workers to request a reduction of working hours could be introduced, and thus workers aged 50 and older could work 15~30 hours per week. The reduced working hour bill for older workers is pending at the National Assembly.
6. Expanding the Time-off Limit

The Time-off System Deliberation Committee held a meeting on June 13 of this year, and decided to expand the time-off limit for union officials.

(Current limit): Trade unions with less than 50 members → maximum 1,000 hours per year
(New limit): Trade unions with 99 members or less → maximum 2,000 hours per year

For trade unions in workplaces which are distributed across multiple cities, the Committee decided to increase the time-off limit if they have 1,000 or more union members.

<Table 2> Time-off Limit Based on Area Distribution