Observation (CEACR) - adopted 2017, published 107th ILC session (2018)

Employment Policy Convention, 1964 (No. 122) - Republic of Korea (Ratification: 1992)

The Committee notes the observations of the Korea Employers’ Federation (KEF) and the Federation of Korean Trade Unions (FKTU) communicated with the Government’s report, as well as the Government’s response thereto.

Articles 1 and 2 of the Convention. Overall labour market trends. In its previous comments, the Committee requested the Government to provide an analysis of labour market trends, taking into account the concerns expressed by the social partners regarding the employment policy measures implemented. The Committee notes the information provided by the Government indicating that the overall employment rate increased from 64.2 to 65.7 per cent between 2012 and 2015, while the unemployment rate increased from 3.3 to 3.7 per cent during the same period. In its observations, the FKTU maintains that the number of quality jobs is decreasing, referring to the results of the 2015 Employment Type Disclosure System (ETDS), which shows that larger enterprises are hiring more non-regular workers, while conglomerates (chaebol) are hiring more indirect (dispatched) workers. The FKTU also refers to the short (5.6 years) average period of service of Korean workers in 2015, compared to an average 9.5 years of service in the Organisation for Economic Co-operation (OECD) member countries. It observes that 19 per cent of workers work in excess of the statutory working hours and permissible overtime, and annual working hours have increased to 2,285 hours per year in 2015. The FKTU also expresses concern that the Government has taken measures that make it easier to dismiss workers, indicating that the Government is creating non-regular jobs by splitting quality jobs into low-paid part-time jobs to achieve its goal of attaining a 70 per cent overall employment rate by 2017. The FKTU adds that there is a lack of training opportunities for persons belonging to disadvantaged social groups, such as workers in small and micro-sized enterprises (SMEs) and those in non-regular employment. In its reply to the FKTU’s observations, the Government indicates that the number of decent jobs is not decreasing, referring to an increase in the proportion of regular workers among wage workers from 2012 to 2015 and a decrease in the proportion of non-wage workers (self employed and unpaid family workers) (from 28.2 per cent in 2012 to 25.9 per cent in 2015). The Committee requests the Government to provide comprehensive updated information on the overall labour market trends, including statistical data disaggregated by sex and age, indicating the situation, level and trends of employment, unemployment and underemployment. It also invites the Government to continue to provide detailed updated information regarding the impact of active labour market measures implemented. The Committee further requests the Government to provide information on the manner in which the principal employment policy measures are decided upon and kept under periodical review within the framework of a coordinated economic and social policy, as required under Article 2 of the Convention.

Job creation measures. The Government reports that it is actively promoting policies designed to safeguard working conditions for disadvantaged workers, referring to the Roadmap to a 70 per cent Employment Rate, launched in June 2013. The Roadmap is a national strategy that establishes policies for job creation aimed at addressing dualism in the labour market and strengthening social responsibility. The Government adds that its policies have resulted in an increase of regular workers (from 43.9 per cent to 48.5 per cent), while non regular workers (34.2 per cent to 32.5 per cent) and low-wage workers (23.8 per cent to 23.5 per cent) have decreased over the past five years, demonstrating that the policies have been effective in at least partly addressing labour market dualism. The FKTU observes that, notwithstanding these measures, as of 2015, the number of non-regular workers had reached a high of 8.68 million, with 96.5 per cent of these workers wholly or partly in temporary employment, and there was an increase in indirect employment in large enterprises and the public sector. In addition, the proportion of part-time jobs had increased to 11.6 per cent. The FKTU adds that indirect employment has increased both in large enterprises and in the public sector. In this context, the FKTU recommends corrective measures including: converting non-regular positions to permanent positions, eliminating illegal in-house subcontracting and intensifying the inspection and monitoring of employers. In its response, the Government maintains that, according to the method of calculation agreed upon by the tripartite partners, there were 6.27 million non-regular workers in 2015, showing that the proportion of non-regular workers in the country has decreased. It indicates further that the proportion of temporary workers among non-regular workers decreased from 65.7 per cent in 2011 to 65.2 per cent in 2015, while the proportion of external workers classified as indirectly employed workers has also decreased, from 20.1 per cent in 2014 to 19.7 per cent in 2016. In its observations, the KEF expresses the view that the EDTS system has not been effective in increasing regular employment, noting that regular workers in subcontracting enterprises are erroneously identified as non-regular workers. The KEF observes that recently, the proportion of non-regular workers is decreasing. In its reply to the observations of the social partners, the Government indicates that the EDTS should be maintained to improve the employment situation of workers, noting that it has implemented “employment improvement measures for public-sector non-regular workers” and converted non-regular workers engaged in permanent and continuous work in the public sector to regular status. The Government also seeks to amend the Act on the Protection of Dispatched Workers. In addition, the Government is continuing its efforts to address discrimination against non-regular workers and to strengthen labour inspection against deceptive or illegal worker dispatching and subcontracting. Concerning trade unions’ right to request relief on behalf of its members for discrimination, the Government indicates that this is an individual right which belongs only to the party whose rights were infringed. It is taking measures to promote employment of regular workers through the revision of guidelines on fixed-term and in-house subcontracted workers to, inter alia, prohibit the signing of repeated short-term contracts and provide opportunities for skills development for the former, and guarantee reasonable wages and access to welfare facilities for the latter. The Committee requests the Government to communicate updated detailed information, including statistics disaggregated by sex and employment type, on the impact of the measures taken under the 2013 National Employment Strategy. It also requests the Government to provide information on the role of the social partners during the development and implementation of these measures. In addition, the Committee requests the Government to provide detailed information on the nature and extent of the planned amendments to the Act on the Protection of Dispatched Workers.

Employment generation and deregulation. The Government indicates that a tripartite agreement was reached on 15 September 2015 to address dualism in the labour market. In this context, it encourages enterprises to allocate additional funds to improve the working conditions of non-regular workers and subcontracted workers. The Government indicates that an increasing number of non-regular workers engaged in permanent and continuous work are being converted to regular status, with 74,000 non-regular workers converted to regular status from 2013 to 2015 and 15,000 more to be converted to regular status from 2016 to 2017. The Government also indicates that the wage gap (65.5 per cent in 2015) between regular and non-regular workers has declined 3 percentage points from 2014. The Government is also improving legislation and systems, providing financial and consulting support and reinforcing labour inspection. It has strengthened sanctions against discrimination on grounds of employment type through revising the non-regular worker law and providing subsidies to convert non-regular workers into regular workers. The FKTU indicates that, despite the tripartite agreement reached on 15 September 2015, the Government submitted five bills without the approval of the social partners. It adds that the guidelines promoted by the Government make it easier to lay off workers and constitute an unfavourable change in the employment rules. The FKTU therefore asked the Government to respect the agreement and repeal the bills. Following its refusal, the workers’ representatives withdrew from the agreement and announced a protest on 19 January 2016. In its reply, the Government indicates that it proposed the bills with the ruling party on 16 September 2015, taking into account the results of the discussions held at that point. On 17 November 2015, it submitted a report including the opinions of the tripartite partners and public interest members to the National Assembly. It adds that the maximum contract period for fixed-term workers may be extended by two years at the request of the workers. It adds that the maximum number of overtime hours will be reduced from 28 hours to 12 hours, as provided for in the tripartite agreement. It also indicates that the public sector has adopted a wage peak system which has enabled the hiring of 8,000 new employees over the next two years. The Committee requests the Government to provide information on the measures taken to reduce labour market dualism and to re-initiate consultations with the social partners in this process. It also requests the Government to continue to transmit detailed updated information on the outcome of these measures, particularly on the extent to which they have led to the creation of full, productive and lasting employment opportunities for regular and non-regular workers.

Youth employment. The FKTU indicates that 1.11 million young people are unemployed and that the rate of non-regular workers among newly employed young workers stood at 64 per cent as of August 2015. It adds that there is strong pressure on young people to take low quality jobs, increasing the rate of poor working youth from 44.3 per cent to 47.4 per cent. The FKTU indicates that, despite this fact, the Government and large companies have not taken effective measures to promote youth employment. In this context, 25.6 per cent of public institutions violate the mandatory employment quota of young people; large companies prefer non-regular workers and persuade young people to take unstable and low wage part-time jobs. In its reply, the Government indicates that the FKTU did not use the official statistics published by Statistics Korea. It adds that the youth employment rate increased from 39.7 per cent in 2013 to 43.1 per cent in June 2016 and the youth labour force participation increased from 43.2 per cent in 2013 to 48 per cent in June 2016. The Government indicates that the high tertiary education enrolment rate (70.9 per cent in 2014) has led to a high unemployment rate for highly educated youth. To create more decent jobs that these young persons want, the Government has been working to narrow gaps between workers in large companies and SMEs, and between regular and non-regular workers. The Government indicates that it offers customized training and employment support for young people having difficulty finding work, through the Employment Success Package, Employment Academy, and other programmes. Although the Government recognizes that some public institutions do not comply with their obligation to hire young people, it indicates that the youth employment rate in public institutions and local public enterprises was 4.8 per cent in 2015, above the mandatory youth employment quota of 3 per cent. The number of newly hired young employees in public institutions and local public enterprises rose from 3.5 per cent in 2013 to 4.8 per cent in 2015. The Committee requests the Government to continue to provide information on the various measures implemented to promote the long-term integration of young persons in the labour market, particularly with regard to educated young persons, as well as other categories of young people who encounter difficulties in finding employment. The Committee also reiterates its request to the Government to provide information on the measures taken or envisaged to promote the inclusion of young persons who are not in employment, education or training.

Employment of women. The Government indicates that it took measures in 2014 and 2016, focusing on “work–family balance” in order to promote female employment. Measures have focused on activating the maternity protection system, expanding the use of flexible work arrangements, including quality part time work and the reinforcement of the childcare system, and re-employment support for women whose careers have been interrupted. The Government considers that, as a result of these measures, women’s economic activity rate went from 49.9 per cent in 2012 to 52.9 per cent in June 2016 and the female employment rate rose from 53.5 per cent in 2012 to 56.6 per cent in 2016. Recalling its previous comments regarding the Workers with Family Responsibilities Convention, 1981 (No. 156), the Committee requests the Government to provide information on measures taken or envisaged to assist both female and male workers to reconcile their work and family responsibilities. The Committee requests the Government to provide updated comprehensive information on the nature and impact of measures taken to increase women’s participation in the labour market, particularly in full, productive and sustainable employment.

Employment of older workers. The Government indicates that it encourages the employment of older workers by promoting the adoption of the wage peak system, expanding subsidies to institutions which support it, as well as the re employment of older workers through customized training. The FKTU indicates that, despite the retirement age of 53 in Korea, retired employees continue to work in non-regular and part-time positions until their late sixties due to an inadequate social safety net. In its reply, the Government indicates that the retirement age stipulated by law is 60. It notes that after retiring, older workers are being re-employed in low quality jobs, and it is therefore strengthening its outplacement and re-employment services to help older workers with lifetime planning and vocational skills. The Committee reiterates its request to the Government to communicate detailed information, including statistical data allowing it to assess the effectiveness of the various measures implemented to promote productive employment opportunities for older workers. It also requests the Government to indicate the impact of the wage peak system on older workers’ employment as well as the number of persons placed in employment as a result of the customized training.

Migrant workers. Recalling its previous comments under the Discrimination (Employment and Occupation) Convention, 1958 (No. 111), the Committee requests the Government to provide information on the situation of migrant workers in the labour market.

Article 3. Participation of the social partners. The Government indicates that, in August 2013, a “tripartite joint implementation monitoring group” was formed at the Economic and Social Development Commission to monitor the implementation of the Tripartite Jobs Pact for a year. It adds that, in October 2013, it designated 14 regional human resources development councils (HRD councils) in major cities and provinces. In addition, it selected 29 joint (professional) education and training institutions providing education and training to generate human resources tailored to regional needs, starting in March 2014. The training was provided to 54,000 people in 2015 and was expected to reach 55,000 people in 2016. The FKTU indicates that only representatives from local governments or large businesses are entitled to chair these committees. It adds that a majority of committee members are employers’ representatives, whereas only a few are drawn from labour. In its reply, the Government indicates that people from labour circles can also represent regional HRD councils. It adds that, the Gyeonggi Regional HRD Council is currently being co-chaired by a person drawn from labour, and that every regional HRD council has at least one member from labour. The Committee requests the Government to continue to provide information on the implementation of the Tripartite Jobs Pact. It also requests the Government to communicate information regarding consultations with the social partners on the matters covered by the Convention, as well as on consultations with representatives of the persons affected by employment policy measures, and representatives of workers in non-standard forms of employment.