Government plans to follow up labor market reform discussions with legislation on issues where tripartite consensus is reached
After the FKTU’s declaration of its intention to walk out of the labor market structure reform discussions, the Minster of Employment & Labor, Mr. Ki-Kwon Lee, made an announcement to proceed with legislation and tax benefits for issues the tripartite members have agreed upon such as clarification of the scope of ordinary wage.
[Table 1] Government Policy on Structural Reform of the Labor Market
|
Issue |
Directions of Government Policy |
|
Youth employment |
ㆍFinance expansion of youth employment through government incentives, contributions from related enterprises, and refraining from wage increases for the top earning 10% of executives and staff membersㆍUse tax deductions, preferential treatment for tax audit exemptions, and additional points for public procurement contracts to incentivize companies to create jobs |
|
Improving the dual structure of the labor market |
ㆍProvide tax benefits for improving working conditions of partner firms in primary large companiesㆍStrengthen support for companies cooperating on a win-win basisㆍActivate consultation system for adjusting supply prices
ㆍExpand the scale of converting employees to regular employment status for constant and continuous work (led by public institutions) |
|
Strengthening social safety net |
ㆍIncrease minimum wage by stages with medium- and long-term objectivesㆍStrengthen labor inspections on establishment of 3 basic employment orders such as payment of at least minimum wage, written employment contracts, and payment of delayed wagesㆍPrepare policy to improve unemployment benefits in terms of extending payment period, expanding coverage, increasing benefits, and eligibility criteria for unemployment benefits recipients (by June)
ㆍPrepare standards for acknowledging as work-related commuting accidents and illness for workers involved in emotionally-demanding work (by the end of this year) |
|
Ordinary wage, working hours, extension of retirement age |
ㆍOrdinary wage: Legislate definition, standards for excluded money and valuables based on Supreme Court decisionsㆍWorking hours: Gradually include holiday work in extended work and allow legislation on special extended working hours after sunset (prepare plans to provide support to SMEs)ㆍProvide consultation service and incentives to restructure wage system for extension of retirement age |
The government also has plans for follow-up discussions on the issues the tripartite members have decided to discuss such as legal systems for non-regular work. Expansion of industrial accident compensation insurance for workers in special types of employment will be resolved through revision of the Enforcement Decree to the Act on the Collection, etc., of Premiums for Employment Insurance & Industrial Accident Compensation Insurance. Other special committees under the Tripartite Commission are being considered by the government as venues for discussion on additional tripartite topics.
[Table 2] Follow-up Tasks Regarding Labor Market Structure Reform
| ∆ Improve legal systems for non-regular employment∆ Prepare comprehensive plans to improve minimum wage∆ Set upper limit of working hours for industries exempted from statutory work hours
∆ Prepare plans to improve the provision to exempt certain type of workers from statutory work hours (Article 63 of the Labor Standards Act) ∆ Clarify standards and procedures for cancellation of employment contracts |