Revive the momentum for labor reform

The government is reportedly considering a plan to selectively increase the flexibility of working hours for certain industries, including R&D, construction, and some manufacturing companies with fewer than 300 employees. The government aims to reignite the labor reform debate, which was halted in March this year due to the '69-hour workweek' controversy, by narrowing the eligibility criteria for working hours reform and differentiating it by occupation and industry.

The government may prioritize certain smaller industries because they struggle the most with a rigid 52-hour workweek. In the case of game and software companies, failing to meet development deadlines can deal a substantial blow to their business. The same holds true for the construction, shipbuilding, and air conditioning industries, where workloads fluctuate based on orders and seasonal factors. For startups in their early stages, complying with working hour regulations is often impossible.

The practice of working intensively during busy periods and exchanging overtime hours for vacations later can be a breath of fresh air for small businesses in these sectors. This is why the government proposed a reform earlier this year to increase the overtime management period from a weekly basis to a monthly, quarterly, and semiannual basis within the 52-hour workweek framework (40 hours of basic work plus 12 hours of overtime). Korea is the only country in the developed world that manages overtime hours on a weekly basis, while most countries handle overtime on a semi-annual or annual basis, providing companies with greater flexibility in workforce management.

Young workers' concerns and resistance to this idea are understandable. Companies say, 'Work more now because we'll give you time off later,' but in reality, they often struggle to take their time off. This is why exaggerated claims by the labor sector and others, stating that workers would be working 69 hours a week year-round, were so widespread. Eventually, the Presidential office backed out, stating that “working more than 60 hours a week is excessive,” and as a result, the discussion fell through.

As the demographic trend of low fertility and population aging cannot be reversed in the short term, the key to reviving the economy's waning growth engine is not working more hours, but changing how we work to be more productive with the same number of working hours.

Nevertheless, the reform will not succeed if it is not relatable to workers, including young Koreans. Prior to commencing the 'second round' of labor reform, the government must come up with practical measures to clear the doubts of workers who think that the reform is just a ploy to make them work more.