Gov't guidelines set for easier layoffs

Members of the Federation of Korean Trade Unions protest the government’s draft of guidelines for easing layoffs and changing the rules of employment during a rally in front of the Government Complex in central Seoul, Wednesday. / Yonhap

By Jhoo Dong-chan

The government released a draft of guidelines Wednesday that will allow companies to fire underperforming workers and to unilaterally change the rules of employment.

The draft, however, is drawing strong opposition from unions, which claim the government unilaterally announced the draft that is unfavorable to workers without prior consultation.

According to the guidelines released by the Ministry of Employment and Labor, companies are allowed to lay off workers if their job performance is deemed too poor.

The ministry, however, said that the standards of performance evaluations should be defined in advance under a consensus between management and labor. Companies are only allowed to fire underperforming workers when they have no chance to improve, even after retraining or transfers.

Also, workers who have been transferred or returned from maternity or other leave within one year cannot be subject to dismissal for underperformance.

The guidelines also include a controversial change to employment rules.

Under the current law, employers are not allowed to change or introduce employment rules in a way that is considered to be disadvantageous to workers, without agreement from the labor union or a majority of employees.

However, the new guidelines may allow employers to change or introduce rules without agreement from labor. The measure is a necessary step for introducing the peak wage system under which workers get a reduced salary after a certain age, the ministry claimed.

“We can’t put off reforming the nation’s labor market any further as employment will be the country’s main agenda issue next year,” said Employment and Labor Minister Lee Ki-kweon during a meeting with labor experts at the Government Complex in central Seoul.

“The ministry has proposed holding discussions over the guidelines with labor leaders many times to reform the labor market, especially for young adults. But they haven’t answered. We had no option but to announce the guidelines for a healthier labor system.”

The government said the guidelines are not a final version and could be amended through discussions with experts.

The guidelines, however, have drawn strong opposition from the labor circle, with some 300 members of the Korean Confederation of Trade Unions (KCTU) staging a rally in front of the meeting venue.

“The government took another step for easier layoffs in order to destroy the lives of the nation’s workers,” a KCTU official said during the rally.

“Its stance favoring management has never changed. Under the new guidelines, employers will be able to fire workers at their discretion. Plus, there is no proof that introducing a peak wage system will guarantee youth employment. It is just another deception to worsen the lives of the 20 million workers in Korea.”

The Federation of Korean Trade Unions (FKTU), which took part in the tripartite talks and reached a large-scale agreement over labor reforms in September, also expressed their opposition. They said the three parties agreed to discuss the issues and the government would not push ahead with its own plans, but the government is now breaching that agreement.

“Doosan Infracore recently conducted massive layoffs and young employees in their 20s and 30s lost their jobs in a day. Such layoffs will prevail if the guidelines are applied to their full extent by the private sector,” said FKTU spokesman Kang Hoon-jung.