Business lobby issues caution on new labor bill

The implications of a new bill on non-regular workers, originally designed to increase job security for non-standard employees, could eventually do more harm than good, the Korea Chamber of Commerce and Industry warned yesterday.
“The bill prohibiting discrimination against the non-regular workforce, if excessively applied, could actually force companies to decrease jobs for such employees,” read a proposal from the Korea Chamber.
The business lobby presented the proposal to the Labor Ministry and the National Labor Relations Commission.
The new labor bill, to take effect in July after its passage last November, mandates that companies turn non-regular workers, including temporary and part-time employees as well as subcontracted agency staff, into legitimate staff members, or regular workers, after a two-year hire period.
The bill, which had been pending at the National Assembly for two years, aims to help non-regular workers have improved job security and working conditions including payments, claimed the Labor Ministry.
According to the Federation of Korean Trade Unions, non-regular workers in Korea totaled 8.4 million as of 2005, rising about 700,000 from a year earlier.
The chamber, however, pointed out that extensive application of the new bill could create burdens for the corporate sector, urging adoption of complementary measures.
The definition of discrimination could also cover salary or extra payments, depending on interpretation.
For instance, when non-regular workers in a company are judged to have the same job description as regular employees, the National Labor Relations Commission can order the firm to halt discrimination and enhance treatment of non-regular employees. Interpretation of the duties is fairly subjective.

By Seo Ji-eun Staff Writer [spring@joongang.co.kr]