Time to solve labor issues through dialogue, compromise
Representatives from labor and management have agreed to expand the application calculation period for the flexible working hours system. This agreement, reached Tuesday, has significant implications as both sides managed to narrow their differences and strike a deal through dialogue and compromise.
The deal is the first of its kind since the Economic, Social and Labor Council started operations last November. The presidential council consists of labor, management, government and public interest groups. At first, few expected labor and management to reach such an agreement so quickly because the two sides were locked in tense negotiations.
It is also the first time in 16 years that the flexible working hours system has expanded the application calculation period which was set at three months in 2003. Now the agreement calls for the period to be as long as six months. This is aimed at helping businesses cope with problems stemming from the shortened 52-hour workweek which went into effect last July.
The Moon Jae-in government introduced the shorter workweek to better protect the rights of employees who had been forced to work far longer hours than the OECD average. However, employers have continued to call for more flexible work hours so they can let their employees work longer than 52 hours per week when necessary.
For their part, workers were strongly against this. They feared more flexibility in the reduced workweek might be abused only to allow employers to exploit labor. However at the last minute, the Federation of Korean Trade Unions (FKTU), one of the country's two umbrella labor organizations, compromised to accept the demand.
The Korea Employers Federation (KEF), which initially demanded the application period be expanded to one year, agreed on the six-month expansion. It also accepted the FKTU's call for better compensation for longer work hours and measures to provide a mandatory 11-hour rest period for overworked employees.
The compromise agreement reflects the stark reality, under which employers, particularly smaller companies and the self-employed, increasingly go out of business due to steep hikes in the minimum wage ― 16.4 percent in 2018 and 10.9 percent in 2019. The shorter workweek has added fuel to the fire.
We welcome the agreement, hoping it will serve as a model for solving other contentious issues that divide the nation sharply. Especially at a time when the economy continues to slow down, all economic players need to cope with their conflicting interests via negotiations and compromise.
The nation still has a long way to go. The progressive Korean Confederation of Trade Unions (KCTU) has boycotted the council. It has even threatened to stage a strike to protest the agreement which the hardline labor group calls a "change for the worse."
We urged the KCTU to join the council and make efforts for dialogue to find a negotiated solution for many pending labor and social issues. The pro-labor Moon administration should make concerted efforts to embrace the KCTU. It also must turn the agreement into a real win-win strategy for both labor and management.
Representatives from labor and management have agreed to expand the application calculation period for the flexible working hours system. This agreement, reached Tuesday, has significant implications as both sides managed to narrow their differences and strike a deal through dialogue and compromise.
The deal is the first of its kind since the Economic, Social and Labor Council started operations last November. The presidential council consists of labor, management, government and public interest groups. At first, few expected labor and management to reach such an agreement so quickly because the two sides were locked in tense negotiations.
It is also the first time in 16 years that the flexible working hours system has expanded the application calculation period which was set at three months in 2003. Now the agreement calls for the period to be as long as six months. This is aimed at helping businesses cope with problems stemming from the shortened 52-hour workweek which went into effect last July.
The Moon Jae-in government introduced the shorter workweek to better protect the rights of employees who had been forced to work far longer hours than the OECD average. However, employers have continued to call for more flexible work hours so they can let their employees work longer than 52 hours per week when necessary.
For their part, workers were strongly against this. They feared more flexibility in the reduced workweek might be abused only to allow employers to exploit labor. However at the last minute, the Federation of Korean Trade Unions (FKTU), one of the country's two umbrella labor organizations, compromised to accept the demand.
The Korea Employers Federation (KEF), which initially demanded the application period be expanded to one year, agreed on the six-month expansion. It also accepted the FKTU's call for better compensation for longer work hours and measures to provide a mandatory 11-hour rest period for overworked employees.
The compromise agreement reflects the stark reality, under which employers, particularly smaller companies and the self-employed, increasingly go out of business due to steep hikes in the minimum wage ― 16.4 percent in 2018 and 10.9 percent in 2019. The shorter workweek has added fuel to the fire.
We welcome the agreement, hoping it will serve as a model for solving other contentious issues that divide the nation sharply. Especially at a time when the economy continues to slow down, all economic players need to cope with their conflicting interests via negotiations and compromise.
The nation still has a long way to go. The progressive Korean Confederation of Trade Unions (KCTU) has boycotted the council. It has even threatened to stage a strike to protest the agreement which the hardline labor group calls a "change for the worse."
We urged the KCTU to join the council and make efforts for dialogue to find a negotiated solution for many pending labor and social issues. The pro-labor Moon administration should make concerted efforts to embrace the KCTU. It also must turn the agreement into a real win-win strategy for both labor and management.
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