Infomag  ˇµ
New Paradigms in the Labor Market
Aug / 2010
Mr. Yim Tae-hee, Minister of Employment and Labor

The EUCCK HR Committee organized a conference, supported by the Ministry of Labor on June 29th.
The focus of the seminar was ˇ°New Paradigms in the Labor Market. With participation of MOL, KCTU, FUTU as well as company HR executives as speakers, this conference approached diverse issues of the current labor market from a range of angles including the newly introduced time-off system. In addition, analysts from SERI, KLSI (Korea Labor and Society Institute), HR consulting companies and law firms also provided academic and balanced views.

This seminar featured 3 sessions:
Morning: Korean employment market overview and strategy of global companies
Speakers: MOL, SK Telecom, BAT Korea, P&G Korea, SERI, Towers Watson
Luncheon: Key note speech from Mr. Yim Tae-hee, Minister of Labour
Afternoon: Latest labor union issues
Speakers: MOL, KCTU, FKTU, KLSI & Yulchon

The morning session included an overview from MOL and SERI on the Korean employee market and its trends. A presentation will also be given by HR executives from SK Telecom, BAT Korea and P&G Korea on hiring and talent development strategies. This morning session was closed by a presentation done by HR consulting company that provided participants with an overview of all the possibilities when hiring after the crisis.

The afternoon session aimed to provide a platform for discussion from the government, two major unionsˇŻ representatives (KCTU – Korean Confederation of Trade Unions and FKTU – Federation of Korean Trade Unions) to exchange opinions on new labor unionˇŻs regulations. The afternoon session was closed by the presentation done by a legal advisor who provided participants with a short overview of obligations and restrictions that will arise when the labor union regulations are enforced from the management side as well as side of the labor union leaders.

Close to 300 participants from all sectors attended this event and appreciated the informative sessions.

Speaking at the special luncheon session, Minister Yim noted that remarkable progress has been made in the industrial relations in terms of its system and practice.

General labor-management relations have been stabilized as a result of the Korean government's strenuous efforts to uphold the laws and principles in a consistent way. In particular, the historic agreement which was reached among the labor, management, government and civic groups in February last year amid the global economic crisis, has laid the ground to advance Korea's industrial relations. Against this backdrop, there are calls for changes in labor movement.

ˇ°We are witnessing labor circles, such as Labor Solidarity for New Hope and unions in LG Electronics and KT, are taking the lead in bringing about new and positive changes in labor movement. On January 1st , the National Assembly passed an amendment on full-time union officials and multiple unions in The Trade Union and Labor Relations Adjustment Act, which have been delayed for thirteen years. Upon the passage, the government has steadily prepared to make the new institution take root by modifying relevant laws and regulations, providing instructions for labor and management and distributing publicity materials.ˇ±
In particular, the Time-Off System Deliberation Committee has finalized the Time-Off system in details to be fully implemented starting from July, 1st .
The government has a firm commitment. The Korean government will make every possible effort to ensure that the system takes root in industrial fields, he said.
ˇ°In implementing the new system, we might face transitional problems. However, the Korean government will remain firm in its resolve to abide by the laws and principles. By doing so, the year 2010 will be recorded as the year of advancement of labor management relations in Korea.ˇ±

The role of management, one of the two pillars of industrial relations, is no less important than that of the government in advancing Korea's industrial relations, Minister Yim noted.
He also observed that Korea is one of the fastest to recover from the global economic crisis among OECD members with its unemployment rate of 3.2% and youth unemployment rate of 6.4% in May 2010. However, the youth, the elderly and women who have difficulties finding jobs still feel that employment conditions are no better than before and this phenomenon is witnessed not only in Korea but in many parts of the world.

This year, the Korean government has placed job creation on the top priority of its national agenda. Starting from January this year, the President of Korea has been presiding over the National Employment Strategy Meeting every month to push ahead with micro and macro policies.

The Korean government revisits all the policies from the perspective of employment and realigns 179 government-funded job projects that have been scattered in each department to be more efficient and systematic so that the public and enterprises can have an easier access.

The government also strives to bring about a structural reform of the labor market. By expanding a flexible work arrangement and a wage peak system, enterprises will be able to recruit more workers with fewer burdens.

Foreign investment companies play an important role in supporting job creation in the Korean economy. In order to facilitate their investment in Korea, the government has implemented nationwide measures such as deregulation and cash grants, he said.

Starting from July 5th , the Ministry of Labor is renamed as the Ministry of Employment and Labor. The Ministry will shift its focus from "people who already have jobs" to ˇ°people without jobs and people who want a better jobˇ± as it considers the public its customers, he noted.