Workers, Management Discontent Over New Bill
By Park Chung-a
Staff Reporter
The government’s new bill to protect non-regular workers which went into effect on Sunday is generating confusion in workplaces, inviting criticism from both temporary workers and management.
The bill is aimed at protecting about 5.5 million non-regular workers who account for 35 percent of the total workforce. Under the bill, temporary workers will automatically be granted regular status if they work for more than two years at the same company. It bans employers from discriminating against non-regular workers.
A large number of non-regular workers at New Core and Homever, the nation’s major retailers and affiliates of E-land Group, have recently lost their jobs, apparently due to the legislation of the new labor bill. New Core has denied renewing contracts for its 350 non-regular workers, replacing them with outsourced workers. New Core's labor union is on strike to protest management's decision, saying that it is an abuse of the law. About 2,000 non-regular workers whose work duration is less than two years at Homever face layoffs and some of them have already been denied the renewal of their contract.
An official at New Core said that from the employer’s perspective, it is hard to grant the status of regular worker to all non-regular workers due to cost problems.
The Korea Confederation of Trade Unions (KCTU) announced on Tuesday that its members will occupy retail outlets of E-land Group on Sunday unless its management gives a commitment to hold negotiations to solve the matter with its labor union.
``If the problem does not get solved after the negotiation, we will launch a campaign to boycott buying products of E-land,’’ said Lee Sok-haeng, KCTU chairman.
"Although there are some companies who turn non-regular workers into regular ones, like Shinsegae, I think the New Core example will be more common," said Kim Gyeong-ran, policy director at KCTU. ``The bill is expected to create more non-regular workers, rather than protecting them, as it will force employers to outsource rather than to directly hire employees.’’
About 110 non-regular workers at Koscom, a subsidiary of Korea Exchange, have also been on strike from June 28 at the lobby of Korea Exchange in Yeouido of Seoul.
Many employers say the law will increase unemployment because it will place more financial burden on companies. The Korea Employers Federation has estimated that the new law will cost firms 42.6 trillion won annually in order to upwardly adjust salaries of non-regular workers to that of regular ones.
Other experts say it is too early to make a judgment on the effect of the law.
"In the early stages, the number of non-regular workers will be lowered and the quality of employment will worsen. However, the legislation of the law is not an end. It is a starting point for resolving the issue of non-regular workers," said Eun Soo-mi, researcher at the Korea Labor Institute. ``Firms who grant status of regular workers to non-regular ones should be given incentives in order to block discrimination against workers,’’ he said.