(LEAD) Park calls for reform of labor market

(ATTN: UPDATES with reaction from umbrella unions in last four paras)

SEOUL, Dec. 22 (Yonhap) -- President Park Geun-hye called Monday for reform of South Korea's rigid labor market, setting the stage for confrontation with labor unions that oppose measures that would make it easier to adjust wages and work schedules.

She asked labor and management to make concessions in ongoing discussions with the government on reforming the labor market, but acknowledged the difficulties in resolving the explosive issue.

"Reform of the labor market is an urgent and important task that cannot be delayed anymore. It will be difficult to achieve sustainable economic growth unless we overcome the barrier," Park said in a meeting with officials and advisers handling economic affairs at the presidential office.

The comments came as the finance ministry called for structural reforms to make the labor market more flexible as part of key economic policy plans for next year to improve national competitiveness and fuel growth.

The government is seeking to ease "inflexibility" in employment at large businesses and public companies as part of its structural reform of the economy.

Finance Minister Choi Kyung-hwan recently said regular workers are being "overprotected," causing companies to shun recruitment and instead rely on irregular workers that they can fire more easily.

Choi later confirmed that the labor market reform will not be focused on making it easier to fire employees but making it less complicated for companies to adjust wages and work schedules.

The latest government data showed that the number of irregular workers in Korea came to 6.08 million as of August, about 32.4 percent of the country's total salaried workers. It was the first time that irregular workers exceeded 6 million since related data started to be compiled in 2002.

The nations' two umbrella unions lashed out at the government plan, claiming it is "anti-labor and feared to produce low-quality jobs."

Calling them a "gift set for capitalists," the Federation of Korea Trade Unions said in a statement that the government intends to "massively produce low-quality jobs under the pretext of creating more jobs."

The Korean Confederation of Trade Unions, the more militant of the two umbrella unions, labeled it a "business-friendly and anti-labor policy intended to shift the nation's economic crisis to workers and the low-income bracket."

"Solving the income imbalance is the only and best way to overcome the low growth and slump of the Korean economy," the union said.

entropy@yna.co.kr
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