Few expect that reforming the labor market is an easy task, especially considering the stubbornness and militancy of the unions and the liberal opposition which usually sides with radical labor activism.
But the way the rival parties are dealing with the issue even before they start negotiations makes one wonder whether they would be able to achieve the all-important reforms.
The ruling party and the main opposition party are far apart on key issues of the labor reform talks -- from what should be the negotiating platform to what issues should be put on the table.
The Saenuri Party is pushing to revive the tripartite committee of government, labor and management, which has been in hiatus since last April. The ruling party notes that before its breakdown four months ago, the committee had reached an agreement on many proposals -- except some key issues -- and that the Korean Confederation of Trade Unions which walked out of the negotiations has expressed its intention to return to the table.
In contrast, the New Politics Alliance for Democracy insists that reform proposals should be discussed by a pan-national committee including political parties, KCTU and the other umbrella group Federation of Korean Trade Unions and employers. It insists that the committee should seek an agreement in the form of a “grand social compromise.”
That idea, if realizable, is ideal. It would be more than good if all the concerned parties participate in the talks and hammer out an agreement. But it’s a very tall order -- one need look no further than the failure of the tripartite committee and the half-success of the recent reform of the government workers’ pension system.
Moreover, the NPAD insists that the proposed committee should discuss issues like chaebol reform, job creation and corporate tax increase. This makes one suspect that the party intends to employ a delaying tactic, with next April’s parliamentary elections in mind.
In fact, some NPAD members argue that the timing is not important in the labor reform talks. They are ignoring the dire situation -- the rigidity and polarization of the labor market is fast cutting into corporate competitiveness and devastating the life of marginal workers day by day.
Labor reforms are essential for pulling the economy out of its low-growth trap, addressing unemployment, especially among the youth, and improving the life of workers in harsh conditions. It cannot be delayed any further and the rival parties must sit together to get the talks started as soon as possible.