1. Government pushes forward social dialogue for the discussion of labor issues, including job creation
Chairman Sung-hyun Moon of the Economic and Social Development Commission (ESDC) visited the Federation of Korean Trade Unions (FKTU) on 4 September and the Korea Federation of SMEs (K-Biz) on 5 September to convince the importance of social dialogue restoration. Chairman Sung-hyun Moon met President Ju-young Kim of the FKTU to request the two umbrella unions to return to the tripartite commission, but the FKTU asserted that the abolishment of two major guidelines is a prerequisite for the return to the tripartite commission.
Minister Young-ju Kim of Employment and Labor visited business associations on 5 September, and urged an approach to industrial issues through social dialogue.
<Minister Young-joo Kim’s Visits to Business Associations >
| Details | |
| KEF | · Chairman Byong-won Bahk: Job creation should be a focus for every policy. It is necessary to have a plan to reduce the impact of an increased minimum wage and reduced working hours.
· Minister Young-joo Kim: Labor-management concessions and cooperation are needed in order to reduce labor disputes. The MOEL will deal with the dual structure of the labor market through social dialogue. |
| K-BIZ | · Chairman Sung-taek Park: Anxiety grows in SMEs due to the increase of minimum wage. It is necessary to support micro-businesses and improve systems by expanding the scope of minimum wages.
· Minister Young-joo Kim: The MOEL is aware of the difficulties in SMEs and will continue to consider this issue in further detail. |
| KCCI | · Chairman Yong-man Park: The government should approach industrial relations issues with a sense of balance. Flexible responses to the current issues through dialogue are needed.
· Minister Young-joo Kim: I will be a minister who has a sense of balance in industrial relations. |
2. Some local governments push forward welfare policies such as a living wage system
Seoul City is pushing welfare policies including a living wage system and a youth allowances system. On 13 September, the Seoul City government determined the living wage for 2018 in the amount of KRW 9,211 per hour. This amount has increased by 12.4%p (KRW 8,197) since last year.
Also, the Seoul City government plans to resume the youth allowances payment that the Ministry of Health & Welfare (MOHW) had revoked. It will give KRW 500,000 per month to 850 youths. This excludes 2,831 youths who were employed last year as well as the recipients of the youth allowances for 2017.