By Jung Min-ho
Representatives of unions, management and the government are making last-ditch efforts to conclude negotiations on reform of the labor market.
The representatives have reportedly agreed on the need to reduce working hours and introduce a peak wage system. But they still remain at odds over how to address salary gaps between large and small companies and between regular and non-regular workers, and how to increase flexibility in the labor market, sources said.
March 31 was the deadline set by the tripartite committee to reach an agreement on the thorny labor issues.
On Tuesday, President Park Geun-hye urged the panel to speed up negotiations, saying, “This is the last chance to reform the labor market for future generations.”
A committee member said it will soon be able to reach a deal.
“We have agreed on some major issues of the reforms as well as the need to strengthen the social safety net,” the official said.
The committee members have agreed on a need for a peak wage system and reduction of working hours, although they are still discussing figures for time and money. In addition, they are trying to strengthen the social safety net for those who are forced out of work and have to work less than they want after the reforms.
But the core disagreement of their discussion is about how to overhaul the so-called dual labor market, which refers to the huge gap between full-time regular employees, who enjoy job security, higher salaries and other benefits, and non-regular workers, who do not.
Labor union representatives believe all workers must be hired as regular employees after working for the same company for a certain period, while those at corporations maintain extending the contract period of irregular workers from the current two years to four years should suffice.
Also, corporation managements insist that the labor laws should be revised for employers to hire and fire workers easily in order to create more jobs, an assertion that the unions disagree with.
While the management side regards the extension of contract periods “more opportunity to work,” unions say this is merely an “extension of precarious status.”
At a Cabinet meeting, Tuesday, Park urged the committee members to make concessions to reach a deal, saying labor market reform is a key to job creation, especially for young people.
“I hope that everyone can help in laying the foundation for the future of our country,” Park said. “I request that compromise deals could be produced within the promised deadlines.”
Her statement comes amid limited employment opportunities for young job-seekers here.
The unemployment rate for people between 15 and 29 stood at 11.1 percent in February, compared with the overall jobless rate of 4.6 percent in the same month. The overall jobless rate has reached its highest level in five years, according to government data.
Nevertheless, another major hurdle may cause further delay of the reforms. Even if the committee members reach a deal at the last minute, there is no guarantee that workers will follow the guidelines.
Already, two major labor civic groups – the Federation of Korean Trade Unions (FKTU) and the Korean Confederation of Trade Unions – said in a joint statement that they will call a general strike, if the committee members reach an “unfair deal for workers.”
“The government’s perception that only workers should make sacrifices is wrong,” said a FKTU member. “We cannot compromise a deal that would produce more irregular workers and unfair treatment for all employees.”