Labor Ministry collaborates with AmCham for executive discussion session
In a significant gathering at the Conrad Seoul Hotel in Yeouido, the American Chamber of Commerce in South Korea (AmCham) hosted the inaugural session of its executive roundtable series. The event, which marked the second high-level dialogue between AmCham and the Ministry of Employment and Labor this year, brought together Vice Minister Kwon Chang-jun and senior executives from major South Korean and multinational companies.
The discussion centred around shaping meaningful labor reforms that would enhance South Korea's competitiveness in the global market. Kwon Chang-jun presented the government's labor policy direction under the vision of "real growth with labor."
One of the key topics of discussion was the need to reduce serious workplace accidents. Kwon also discussed upcoming agenda items, such as supporting the potential adoption of a 4.5-day workweek, pursuing mutually beneficial approaches to extending the retirement age, and addressing the issue of prolonged illegal industrial action.
Participants called for a revision to the Serious Accidents Punishment Act to focus more on prevention. They also expressed concerns about weakened management rights under the Yellow Envelope bill and restrictions on deploying substitute workers during strikes. Strengthening labor dispute mediation and arbitration mechanisms was identified as another important area of focus.
Supply chain disruptions caused by illegal stoppages in the logistics sector was another concern raised. Business leaders at the roundtable also expressed their concerns about frequent changes in labor laws and regulations.
AmCham Chairman and CEO, James Kim, emphasized the importance of labor flexibility in strengthening South Korea's role as a regional hub. He stated that AmCham is ready to work closely with the government to shape these reforms.
In an effort to reflect industry voices on key labor issues, AmCham is conducting a survey of its member companies. The survey follows the recent passage of the "Yellow Envelope" bill.
South Korea has an opportunity over the next five years to close the gap in the number of regional headquarters compared to Singapore and Hong Kong. The government's three key priorities for labor policy, as presented by Kwon, are protecting the rights of all workers, building fair workplaces by narrowing gaps, and boosting vitality in the labor market.
Limited recourse to address prolonged illegal industrial action and concerns about weakened management rights under the Yellow Envelope bill were other issues addressed during the roundtable. The roundtable concluded with a commitment from both parties to continue the dialogue and work together towards meaningful labor reforms.
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