Trends in Government

MOEL focuses on implementing labor reform policies in workplaces with labor reform bills pending in the National Assembly; opposition parties hold a majority in the Environmental & Labor Committee

The Ministry of Employment & Labor (MOEL) continues its efforts to pass the bills on labor market reform during regular sessions of the National Assembly. Nevertheless, the prospects for this is not good, since the majorities in the National Assembly and standing committees, such as the Environmental & Labor Committee, are held by opposition parties. The MOEL is now focusing on spreading policies on labor reform in workplaces, including reform of wage systems and amending collective agreements which violate the labor laws and legislation in force, etc.

As of 26 October 2016, 428 of 1,150 workplaces subsidized by the MOEL completed introducing wage peak systems, and 300 public institutions adopted performance-based wage systems (119 public enterprises and quasi-government institutions, 138 local public enterprises, 43 public institutions).

The MOEL also made revisions to 439 of 1,503 collective agreements which contained illegal or unreasonable clauses (as of 4 November), and started to work on revising collective agreements at construction sites with projects valued at a minimum of KRW 10 billion (USD 8,462,000).

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