Controversial safety act remains in place as political parties squabble

Economy

Published: 01 Feb. 2024, 19:05

Controversial safety act remains in place as political parties squabble

The lawmakers of the People Power Party stage a protest to call for the passage of a revised proposal of the Serious Accidents Punishment Act on Thursday at the National Assembly in western Seoul. [YONHAP]

A controversial safety act will be kept in place for smaller enterprises without a further grace period as the two major political parties failed to reach a deal Thursday.

The Serious Accidents Punishment Act, which came into effect last Saturday, has become a flashpoint in the political realm as President Yoon Suk Yeol and the ruling People Power Party (PPP) balked at the enactment over the potential burden on small businesses.

Some raised the likelihood of the two parties making a last-minute consensus ahead of a Thursday plenary session as the PPP suggested that it advocate the establishment of a state-run agency in charge of overseeing industrial workplace safety in two years in exchange for a Democratic Party (DP)’s concession to a two-year postponement.

The DP, however, rejected the offer, saying that the rights of laborers outweigh the law’s impact on employers.

“We will stick to the fundamental principle that the life and safety of workers at industrial sites should be prioritized,” said Hong Ik-pyo, floor leader of the DP.

The presidential office expressed strong regret over the refusal.

“It is exceedingly regrettable that DP declined the offer made to lessen the devastating situation of small- and medium-sized enterprises and marginalized merchants,” an official at the presidential office said.

The PPP echoed the sentiment, saying that the DP’s decision is intended to seek favor from labor voters ahead of the general elections in April.

“DP is preoccupied with winning votes from two large labor unions — Korean Confederation of Trade Unions and Federation of Korean Trade Unions — overlooking the livelihoods of people,” said Yun Jae-ok, floor leader of PPP.

Yun went on to note that DP failed to make good on its promise since the party initially suggested the new agency as a condition to pass the revised proposal of the safety law.

“DP mentioned the establishment as the ultimate condition for reaching a deal, therefore we took it seriously to deliver a consensus,” Yun said, “But it turned its back against 8 million workers and 830,000 SMEs and self-employed businessmen,” the floor leader said.

The Serious Accidents Punishment Act, which was enacted for bigger businesses in January 2022, holds employers liable for fatal on-site accidents caused by insufficient safety measures. Employers can face a one-year minimum prison term or a fine of up to 1 billion won ($750,000).

Though larger companies have been subject to the law since 2022, smaller businesses, categorized as those with less than 50 employees, were exempt from the rule due to a lack of human resources and cost concerns.

BY PARK EUN-JEE [park.eunjee@joongang.co.kr]