Roh to try to limit wage hikes

President Roh Moo-hyun said yesterday that he would try to stop wage increases that exceed productivity growth. “The goal of that is to cut [wage increases] by half.”
Speaking to business executives from mid-sized companies and technology-intensive start-up firms, Mr. Roh said he understands the concern about economic losses caused by “excessive labor activities and strikes.”
He said there is a tendency of labor unions to become what he called “aristocratic and authoritarian.” What is of most concern to the administration is that the labor movement is becoming more focused on looking after the employees of a small group of large companies. “This does not benefit the interest of the workers of smaller and poorer companies, but tends to instead create problems,” he said, adding that the situation must be corrected.
Mr. Roh also commented on the “strong leadership” called for recently by the Federation of Korean Industries, a big-business lobby group. “It is time to change the perception about the national leader,” he said. But he said he is trying to make a fundamental shift in the country’s policy. “What is so wrong about giving in a little to labor?” he asked. “There should be an attempt to engage in dialogue first before you show the fist,” he said, “and only then will the public support you.”

by Choi Hoon