By Yi Whan-woo
The ruling and opposition parties are expected to start discussing the stalled bills on labor and economic reforms, soon after the opposition bloc vowed to cooperate on government-led corporate restructuring.
How to restructure the corporate sector is emerging as a dominant issue after the main opposition Minjoo Party of Korea (MPK) and the minority opposition People’s Party said they will discuss the Park Geun-hye administration’s reform plans with open minds.
In response, the Saenuri Party has proposed talks involving the opposition parties and the government to discuss how to deal with non-viable and money-losing companies.
“We believe the opposition parties will cooperate on passage of labor and economic reform bills first if they are eager to discuss corporate restructuring,” Saenuri Party floor leader Won Yoo-chul said Friday.
He offered to hold talks among the chairmen and floor leaders of the three parties in line with a proposal made earlier by Rep. Kim Jung-hoon, Saenuri Party’s chief policymaker.
Kim Jung-hoon proposed the establishment of a consultative body among leaders of rival parties and government officials in response to opposition party leaders’ promise to support the government’s corporate restructuring scheme.
On Wednesday, MPK interim leader Kim Chong-in and People’s Party co-Chairman Rep. Ahn Cheol-soo said they are open to working with the Park administration and the Saenuri Party to find ways to revive the sluggish economy.
Their pledges surprised many because it had been considered a taboo among progressive-minded legislators to discuss corporate restructuring, which usually involves massive layoffs.
The opposition parties, encouraged by better-than-expected results in the April 13 general election, are apparently shifting their focus to economic recovery before the 20th National Assembly starts on May 30.
Their policy shifts are seemingly aimed at wooing center-right and moderate voters in preparation for the 2017 presidential election.
The MPK launched a task force on Friday to address the Park administration’s corporate reform drive.
It still asserts that some of the five pending bills proposed by the Saenuri Party are aimed at making it easier for companies to lay off employees, saying the bill lacks relevant measures to help them land new jobs.
Analysts speculated that the parties will clash over certain clauses on the bills.
“It’s noteworthy that the opposition bloc decided to collaborate with the government on a broad scale,” said Lee Kang-yun, a journalist-turned-political commentator. “However, I doubt whether the MPK and People’s Party can agree with the ruling party when it comes to details.”
Four bills deal with labor standards, employment insurance benefits, compensation for industrial accidents and contract terms for non-regular workers while the remaining bill is about expanding the service industry.
One of them states that the contract term for temporary workers aged 35 or older should be extended to four years, up from two.
The MPK said those workers rather should win rights as regular workers automatically when their four-year contracts expire.
The rival parties are also at odds over employment insurance benefits.
Opposition lawmakers claim those workers who are laid off should receive up to 60 percent of their monthly salaries and that amount should be paid to them for one year.
The Saenuri Party insists on paying 1.2 million won ($1,050) a month for up to 180 days after a worker loses her or his job.
The President urged the National Assembly to pass the bills collectively, saying “It will optimize the effect of corporate restructuring.”
Kim Jung-hoon asked the MPK and People’s Party to step up in endorsing the bills.
“Corporate restructuring and labor reforms are like a needle and a thread,” he said. “Labor reforms must be included for corporate restructuring to succeed.”
Deputy Prime Minister and Minister of Strategy and Finance Yoo Il-ho also agreed, saying, “The pending bills will be helpful to resolve employment hardships and subsequently boost corporate reforms.”