Business associations call for drastic changes to overtime regulations

The Korea Times

The Korea Times

Business

Tue, September 26, 2023 | 08:49

Companies

Business associations call for drastic changes to overtime regulations

Posted : 2023-03-06 16:48

Updated : 2023-03-06 19:41

Korea Federation of SMEs Chairman Kim Ki-moon speaks during a press conference in Yeouido, Seoul, Monday. Yonhap

By Lee Kyung-min

Business associations are demanding the government take further steps in expanding overtime limits to help employers better meet production needs under the broader context of labor reform, according to industry officials, Monday.

Propelling the collective demands by major employers' groups is years of frustration and uncertainties in business planning, brought on mostly by frequent threats and actual strikes of unionized workers. Those almost always led to wasting time and corporate resources, hindering effective and timely management decisions critical to businesses' survival and profit generation.

They say workers refusing to take on extra hours amid short-term high output demands puts corporate growth prospects at risk and ends up undercutting trust with buyers that would not otherwise hesitate to seek committed long-term partnerships.

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The government announced earlier in the day that the current weekly 12-hour overtime limit will be increased to 29 hours per week. If a break of 11 hours straight is not guaranteed, the overtime will be limited to 24 hours.

"More bold measures and certainties are needed," Kim Ki-moon, chairman of the Korea Federation of SMEs (KBIZ), a group representing the interests of small and medium-sized enterprises, said during a press conference in Yeouido, Seoul.

In Kim's view, expanding the workweek to a maximum 69 hours is a step in the right direction but it is still far from enough when compared to Japan's system whereby the ceiling for overtime is set at 100 hours per month or 720 hours per year. Both Japan and Korea's respective labor acts stipulate a basic 40-hour work week.

"Businesses simply have no way of meeting client output demands, if workers refuse to work," Kim said. "The divisive and unreasonable rule is also pushing some non-hardline workers willing and able to take side jobs. The absurd limit should be lifted promptly to help give work to people in need of income."

Monday's measure was met by optimism from businesses as indicated by a Korea Chamber of Commerce and Industry (KCCI) survey.

In a survey of 502 members, 79.5 percent said the revision will fortify corporate competitiveness and job creation, providing vitality to overall business activities.

About 80.7 percent said job market conditions will be improved due to an increase in new job openings and strengthened job security.

Flexibility will be needed to better help the revision settle without major disruptions, they added, as buttressed by open discussions of challenges and ways to resolve them, reflecting the demands of both workers and employers.

In a separate survey of 702 employees aged between 20 and 39 by the Federation of Korean Industries (FKI), the country's largest business lobby, 57 percent agreed that the current 52-hour workweek is out of date. Over 60 percent said the workweek limits should be more flexible where needed.

lkm@koreatimes.co.kr