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Don’t rush to implement the industrial disaster law

Published: 26 Oct. 2023, 20:16

Small and mid-sized companies are demanding a longer grace period for the imposition of the Serious Accidents Punishment Act, which would be expanded to include workplaces employing 5 to 49 people from Jan. 27. Employers claim that they need more time to toughen safety measures to avoid industrial accidents that could make them criminals.

The plea must not be neglected. There are about 830,000 companies that fit that payroll category. Many of them serve at the bottom tier in the industrial ecosystem. They are responsible for molding and other root technologies of manufacturing processes.

Only half of them have received consulting, technological training and education from outside, including the government, since the law went into effect. During a recent parliamentary audit, Lee Jung-sik, Minister of Employment and Labor, admitted that about half or 400,000 out of 830,000 companies may need more time despite government funding and support. The Korea Federation of SMEs is worried that if the scope of the law is expanded as planned, many employers could face punishment and companies of root technologies could come down. Because SMEs rely heavily on company owners, companies can fall apart if their owners come under judiciary risk.

Two years have passed since the law went into effect, but the confusion persists. Complaints arise over the ambiguous provisions of the law and the tiring administrative procedure demanding too many documentations. But the effect on reducing industrial accidents and casualties is questionable because victims and deaths actually increased after the law. Last week, six business-related organizations, including the Korea Enterprises Federation, issued a statement opposing the amendment to the Labor Union Act that can promote illegal strikes and demanded a revision of the Serious Accidents Punishment Act to give a two-year grace period for smaller companies.

Before broadening the scope of the law, the law’s provisions must be revised in a reasonable direction to raise the effectiveness. The law must lessen the ambiguity that can trigger various interpretations. It must be clearer on exactly who would become responsible for what and how the punishment works. Businessmen said they would have to wait for more legal precedents to be set due to too many ambiguities.

But the unions demand a tougher law. It opposes a deferment in the law on smaller companies since 80 percent of the industrial accidents occur at worksites employing less than 50 people. But as the data shows, strong regulations do not necessarily bring about the desired outcome. The government and rivalling parties must deliberate on a reasonable solution. They must not put off the revision because of their campaign schedules ahead of the next parliamentary election in April to jeopardize the fate of small companies and their employees.