The business community points out that while the government and the National Assembly shout slogans of pragmatic economic policies flexible to corporate activities, actual policies are moving in the opposite direction. It is argued that the business environment is deteriorating overall as labor-biased policies that companies worry about continue to be strengthened, and demands for regulatory reform to enhance industrial competitiveness are not properly reflected.
A representative example cited by companies is the implementation of the Yellow Envelope Act (amended Trade Union Act) and the statutory retirement age extension being pushed by the government and the ruling party. The business community points out that from the legislative stage of the Yellow Envelope Act, they raised concerns about side effects such as excessive union negotiation demands and presented several alternatives, but most were not accepted.
It is stated that after the law's implementation, concerns have become reality, and conflicts between labor and management over the Labor Committee's determination of employer status are spreading. In a recent survey by the Federation of Korean Industries targeting companies, only 27.4% responded that determinations regarding original employer status were "being made in accordance with laws and Ministry of Employment and Labor interpretation guidelines."
Conflicts over retirement age extension also continue. The business community presented alternatives such as revitalizing re-employment considering side effects like the contraction of youth employment, but the government and the ruling party are instead accelerating legislation. Minister of Employment and Labor Kim Young-hoon recently stated at a National Assembly audit that "the retirement age extension bill must be processed within this year" and "if it is judged that only a decision remains as discussions have matured over a long period through the National Assembly Task Force (TF) etc., we will promptly present the government's proposal."
A business community official said, "Excluding some industries such as semiconductors, most companies are in a difficult situation, and the burden is being aggravated by the government's pro-labor policies," adding, "The government and the National Assembly seem not to be properly listening to corporate voices, especially on labor issues."
It is also pointed out that regulatory reform does not meet the business community's expectations. Although the government launched a Regulatory Rationalization Committee and President Lee Jae Myung directly took on the role of chairman, showing enthusiasm, specific results are slow, and it is argued that the business community's demands are not sufficiently reflected in policies.
A point where companies express particular regret is the discussion on labor exemptions in the special law for mega special zones to apply exceptions to the 52nd-hour workweek system. Concerns also arise that the introduction of exemptions will ultimately fizzle out, as the government emphasizes "harmony between corporate productivity and protection of workers' health rights" through social dialogue. There is worry that labor policies essential for corporate activities may be hampered by the political establishment's long-standing ideological disputes.
Another business community official said, "Social dialogue is important, but it is unknown when an agreement can be reached in a situation where the labor sector strongly opposes," adding, "Since it is important to increase the speed of project execution in advanced industries such as semiconductors, we hope that legislation proceeds at least according to the schedule the government has been internally reviewing."
in INDUSTRY
