Korea Enterprises Federation proposes labor law reforms

The Korea Enterprises Federation (KEF) has proposed several labor law reforms aimed at increasing flexibility for businesses, particularly regarding the upcoming Mega Special Zone Act. Key proposals include excluding profit-linked performance bonuses and high-level management decisions, such as the establishment of new factories, from the scope of collective bargaining and labor disputes. KEF argues that current demands for profit-sharing by unions could hinder R&D investment and global competitiveness.

Additionally, KEF is calling for greater labor flexibility within the Mega Special Zone, suggesting the expansion of overtime management units from weekly to monthly or annual cycles, the introduction of a ‘white-collar exemption’ for professionals and R&D staff, and the relaxation of regulations regarding fixed-term and dispatched workers.

The Korean Confederation of Trade Unions (KCTU) has strongly condemned these proposals, labeling them an attempt to undermine the 52-hour workweek and expand irregular employment. The KCTU argued that profit-sharing is directly linked to wages and working conditions, and that the KEF's demands represent a systematic attempt to prioritize corporate interests over workers' rights and health.