Moon urges 'compromise' on labor issues
President Moon Jae-in salutes the national flag along with members of the Economic, Social and Labor Council during its inaugural meeting at Cheong Wa Dae, Thursday. From right are Korean Employers Federation Chairman Sohn Kyung-sik, Moon, Federation of Korean Trade Unions Chairman Kim Joo-young and Korea Chamber of Commerce and Industry Chairman Park Yong-maan. Yonhap
By Kim Yoo-chul
President Moon Jae-in called for “compromise” between labor groups and businesses to tackle urgent economic issues.
“The Economic, Social and Labor Council has finally launched after tough discussions. The dialogue body will take a central role to lead changes and move forward with plans to fulfill the national agenda,” Moon said in his opening remarks at the inaugural meeting of the council at Cheong Wa Dae, Thursday.
“Union representatives and businesses are sincere partners for state affairs. This has been one of my core principles for decades on which I have never yielded.”
Moon added that improved relations between unions and businesses will clearly help the country see progress in societal and economic issues.
Mentioning the government's ongoing drive to address structural issues such as the low birthrate and growing economic inequality, Moon is hoping to see a “greater social compromise” between them to encourage the collaborative process.
“Once we reach a compromise on issues, then more jobs will be coming, companies will remain competitive and that will boost the domestic economy,” Moon said.
But Moon expressed regret about the absence from the meeting of the Korean Confederation of Trade Unions (KCTU), a major umbrella group. “In terms of openness and engagement, I hope the KCTU will join the body as early as possible as it has shown its sincere willingness and commitment toward making progress on societal issues through social compromise.”
The council included representatives from the government, labor groups, management, women, merchants and small business owners. But the KCTU was protesting a new flexible workweek hour system, saying it counteracts the reduction of the workweek aimed at preventing overworking.
“The council won't only handle societal issues as I want it to explore measures on how to reform the national pension system and others in terms of finding new growth engines,” Moon said.
In a separate briefing at Cheong Wa Dae, late Thursday, council chief Moon Sung-hyun said he will ask the KCTU to participate in the body and begin talks for a possible adjustment of the workweek system.
Economists say the country's economic outlook could worsen due to external risks. The government vowed to apply all possible means to prop up investment and accelerate deregulation.
It plans to invest up to 15 trillion won in financial support for small- and mid-sized enterprises in the form of credit from policy banks, and tax benefits to help them invest, and a temporary 15 percent fuel tax cut worth 2 trillion won lasting six months from Nov. 6.
The uncertain economic outlook has also discouraged corporate investment, with the total in the second quarter down 5.7 percent from a year earlier, exacerbated by restructuring in the shipbuilding and carmaking sectors. The government plans to provide up to 1.3 trillion won of credit guarantees for struggling car parts makers and shipbuilding-related companies.