Trends in the National Assembly and Government

1. Regular session of the National Assembly and parliamentary inspection to open in September

The next regular session of the National Assembly is scheduled to open for 100 days from September 2nd and parliamentary inspection is expected to be held for 30 days during the National Assembly session. Labor plans to finalize its strategy for the parliamentary inspection by late August and urge to settle labor disputes in such workplaces as Ssangyong Motors and Hyundai Motors. Concern is being raised as politicians from both the ruling and opposition parties are expected to summon more businessmen for the parliamentary inspection, with the aim of winning by-elections in October and regional elections in June.

<Table 1> Issues and progress at major workplaces

As of August 16, 269 bills have been submitted to the Environment & Labor Committee (ELC). Of those, 12 bills (10 proposed by politicians and 2 by the government) have passed the National Assembly.

Meanwhile, legislative discussions regarding strengthening the regulation of enterprises, postponed from last June at the special session of the National Assembly, are expected to proceed in mid-October after the parliamentary inspection.

<Table 2> Labor bills pending at the 19th National Assembly (as of Aug 16)

【Reduction of working hours】
At the legislative subcommittee of the ELC on June 26, the ruling party, opposition parties and the government agreed to include work on holidays as extended work and to implement this in stages. The bill is likely to be legislated within the year, after adjusting the period of implementation and through tripartite discussions, ensuring measures to support small-and medium-sized enterprises.

【Strengthening regulations on dismissal for managerial reasons】
Similar labor bills have been submitted by the ruling and opposition parties. They are expected to hold discussions on accepting selective ways to avoid layoffs, which may then be made into law.

【Expanding protection of independent workers】
Last November, the ruling and opposition parties almost reached a consensus on recognizing independent workers as workers falling under the labor laws. The ruling party is raising the necessity of tripartite discussions, while the government is preparing measures to expand the scope of both Industrial Accident Compensation Insurance and Employment Insurance to cover independent workers.

【Expanding the scope of ordinary wage】
The ruling party is proposing that wage system should be revised following discussions among the tripartite members, while the opposition parties and labor argue that ordinary wages should be legislated based on Supreme Court precedents. The government is expected to submit the draft revision during the National Assembly session in September, based on the decision of the Committee on Improvement of the Wage System.

【Strengthening regulations on industrial safety】
In addition to strengthening regulations on chemical accidents last April (Toxic Chemicals Control Act), politicians are proposing various revisions to the Occupational Safety & Health Act which will place a heavier responsibility on employers and primary contractors.

【Restrictions on in-house subcontracting】
The ruling party has a strong will to restrict in-house subcontracting as pledged during presidential and general elections, while opposition parties are posing problems related to outsourcing as well as working on the stipulation of criteria regarding subcontract • dispatch and ban on indirect employment.

【Minimum wage】
The ruling and opposition parties have already proposed bills to increase the minimum wage and make changes to the current minimum wage decision system so that the National Assembly will determine the minimum wage. However, these bills are still pending due to differing opinions between the parties on specific measures.

【Time-off and multiple unions system】
While opposition parties are insisting on a revision of the law, the government and ruling party are proposing to improve the law rather than abolition. Nevertheless, confusion has intensified since the recent initiatives by the ruling party exempt trade unions at the supra-enterprise level from unifying bargaining channels.

2. Government continues efforts on job creation and labor inspections

During the 2nd half of this year, the government will focus on improving systems related to the 6 pivotal projects which include the creation of decent part-time jobs, the reduction of working hours and youth employment. In addition, the government will establish a monitoring team and perform quarterly monitoring on the employment of youth, the elderly, and women.

<Table 3> Six pivotal projects of the MOEL (Employment and labor policy in the 2nd half of 2013)

Meanwhile, the government plans continue labor inspections in major companies in the 2nd half of 2013. The government has already finished labor inspections in 6,300 companies and will continue to do so, focusing on in-house subcontracting and long working hours.

<Table 4> Labor inspection plans in the 2nd half of 2013