Ten truths about the law to protect non-

regular workers
Chang, Eui-Sung, Director-General,
Labor Standards Bureau, Ministry of Labor

It is already more than two months since the law on protection of non-
regular workers entered into force. This legislation has brought about
many significant changes to the work sites of this country. In particular,
Woori Bank, Busan Bank, Shinsegae, Home Plus, LG Telecom and the
employers and the union of the health and medical care sector are
notable for their actions to promote employment security and equality
for non-regular workers.

In contrast, the E-Land Group is cited as a case where the employer

took actions against non-regular employees by, for instance, deciding to
contract out the works which had been previously performed by the
non-regular workers.

The fact is that, although there are many good examples of increased
protection for non-regular workers in the overall labor market, some
people are raising their voice for revision of the law on protection of non-
regular workers, which gives a misleading impression that the new law is
faulty and further increases misunderstanding and uneasiness about the
law.

There are 'many cases' where the purpose of promoting

‘non-discrimination and job security' for non-regular
workers has been implemented

We need to have an objective understanding of what is happening now.

Accordingly, it is very significant at this moment to clear away all the
misconceptions about the law on protection of non-regular workers and
look into the genuine aspects of the law. Here are ten truths about the
law and relevant developments:
Truth 1. The first and foremost purpose of the law on protection of non-
regular workers is to eliminate discrimination against non-regular
workers. However, it is not practical to expect that non-discrimination
will be accomplished overnight. It costs money to achieve the goal of
non-discrimination. Therefore, it should be understood that better
treatment and non-discrimination for non-regular workers could be
realized on a gradual basis within the limit of individual employers'
ability to pay.

Truth 2. The law on protection of non-regular workers does not provide

for converting non-regular workers into regular ones as its highest
priority. It is true that, under the law, fixed-term employees shall have
the right to become regular ones once they work for longer than two
years. Still, becoming a regular employee is not always the best
solution: as many as 51.5% of non-regular employees have chosen to
work for a non-regular job of their own accord. What is important is to
ensure that non-regular workers are not treated less favorably than
their regular colleagues who do the same or similar work, unless there is
a justifiable reason for such unfavorable treatment.

‘Conversion into regular workers’ should not be the

ultimate goal of the law

Truth 3. Woori Bank has created a separate job category for formerly
non-regular employees while endowing them with a regular status. This
solution for increased job security and gradual improvement of
treatment for non-regular workers came after the long-held talks
between the union of regular employees and the management of the
Bank. In particular, now the formerly non-regular employees can enjoy
the same level of non-wage benefits as the existing regular employees.
This is largely thanks to the unselfish concessions from the regular
employees who agreed to freeze their wage in order to raise a fund for
better conditions of non-regular employees.

Truth 4. Similarly, Busan Bank has created a lower-grade job category to

provide non-regular employees with regular jobs. This is based on the
agreement by the management and union to improve job security and
working conditions for non-regular employees. One of the notable
consequences is that the barrier to non-regular employees' job
promotion has been torn down. This case of Busan Bank would not be
possible without the regular employees' long-sighted decisions,
including wage freeze.

Truth 5. Shinsegae has provided its part-timers with regular jobs.

Naturally, discrimination at work has been significantly reduced. The
company expects that, in the long term, the increased job security of
the formerly non-regular employees will lower the rate of job
separation, which will, in turn, save the costs of recruitment and
employee training/education. Another advantage will be the formerly
non-regular employees' higher commitment to work and the
consequent large growth in their productivity. Those employees also
estimate that, with their status changed, they feel more responsible and
devoted to the company now, stressing their willingness to work
together with other regular employees to promote harmony at
workplace.

The problems of non-regular work cannot be solved

without mutual understanding and concessions between
the labor and management

Truth 6. Korea Exchange Bank, in an effort to increase employment

security of non-regular employees, decided to endow them with an
indefinite-term status. Furthermore, those with higher competency and
outstanding contribution to the Bank shall be appointed to regular jobs.
In this way, the formerly non-regular employees have been provided
with an opportunity of becoming regular workers, as well as equal
benefits and higher job security.

Truth 7. In the health and medical care sector, the industrial union and
employers have agreed to save about a third of the net wage increase
of the regular employees in 2007 for a fund to be used for better
working conditions of non-regular workers in the sector. This agreement
came after the long-held discussions between the union and employers.
It is particularly important as it is not only the first tangible result at the
sectoral level over the issue of non-regular workforce but also an
evidence of the critical role that a regular employees' union has to play
in resolving the question of non-regular workforce.

Truth 8. Korea Asset Management Corporation (KAMCO) has set another

example of cooperative labor relations as the unions of regular and non-
regular employees have been integrated into a single union. Moreover,
the regular employees settled for a lower wage increase so that a fund
could be reserved for better working conditions for non-regular
employees. Thanks to the cooperation from the regular employees, non-
regular employees have easier access to regular jobs, which
understandably has increased harmony and peace at workplace.

Truth 9. Korea Research Institute for Vocational Education and Training

(KRIVET) has a 'special committee on non-regular workforce' which
consists of representatives from both the labor and the management.
This committee has played a leading part in addressing the problems
related to non-regular workers. As a consequence of the committee's
efforts, recently some of the non-regular employees were given the
regular employee status. As for those who still remain non-regular, the
labor and management is working together to ensure that they are
provided with better working conditions and, ultimately, regular jobs.

Truth 10. Hyundai Motors transferred some of the fixed-term employees

to regular jobs, by hiring them as new recruits. In this way, the formerly
fixed-term employees could get a regular job and have higher
employment security. The result is that they are more motivated to work
and much more committed to the company.

The movement towards non-discrimination for non-

regular workers is prevailing

The episodes described above confirms that the unions and employers
are working together for the purpose of the law to protect non-regular
workers, that is, non-discrimination and higher job security for non-
regular workers. They also affirm that those success stories are always
the result of open and sincere communications between the employers
and employees.

We have a clear lesson here. The question of non-regular workforce

cannot be solved by the legislation alone. It is a more complicated
question that requires positive involvement of both employers and
employees, in addition to efforts of the Government. It should be borne
in mind that this is the time for concerted efforts of social partners to
ensure that the law on protection of non-regular workforce gets on the
right track.