President Lee Jae-myung said at a meeting with Korean Confederation of Trade Unions (KCTU) leadership at the Blue House on the 10th, "Although the Fixed-Term Employment Act was created to encourage conversion to permanent employment, it has effectively become a 'law banning employment beyond two years.'" He also pointed out, "Measures intended to improve workers' conditions seem to be resulting in weakening workers' standing." At the National Economic Advisory Council meeting the previous day, he directly criticized the contradictory reality of 'non-regular worker protection law that drives out non-regular workers.' President Lee painfully identified the reality that a law introduced 20 years ago to protect workers has now become 'shackles' that mass-produce non-regular workers.
Many domestic companies have reluctantly adopted the practice of '1 year and 11 months' employment due to the Fixed-Term Employment Act. This was somewhat unavoidable given the rigidity of a labor market where dismissal is extremely restricted. Since firing becomes virtually impossible once workers are hired as permanent employees after two years, companies are reluctant to hire in the first place. This is likely what President Lee had in mind when he asked rhetorically, "The next generation will not be able to enjoy permanent positions," and "It seems unions are also fighting to maintain a certain number of jobs, but do you think that will work?" Indeed, in the labor market flexibility index released last year by Switzerland's International Institute for Management Development (IMD), Korea ranked only 44th out of 60 countries. This is far below major advanced nations such as Denmark (1st), the United States (10th), and Japan (17th). Difficulties in dismissal and hiring, and militant unions concentrated in large corporations were cited as reasons.
For our economy, which is mired in uncertainty due to Middle East war risks, labor-management coexistence is more urgent than ever. However, since the Yellow Envelope Act (amendments to Articles 2 and 3 of the Trade Union Act) took effect a month ago, all 10 cases ruling on whether the principal company bears employer responsibility have sided with subcontractor unions, showing the labor-management balance has collapsed. The ruling Democratic Party of Korea should positively accept the proposal by the People Power Party on this day to form a 'Yellow Envelope Act revision consultative body' to discuss these issues. Unless the tilted playing field between labor and management is corrected, overcoming the economic crisis will only become more distant.
True labor protection is possible only when corporate competitiveness is secured. Labor should agree to secure employment flexibility and businesses should contribute to strengthening social safety nets — both sides must actively pursue a 'practical grand labor compromise.' Only when labor regulations including the Fixed-Term Employment Act are reorganized in a market-friendly manner can more quality jobs be provided to young people.
