(EDITORIAL from Korea JoongAng Daily on Aug. 28)

Compromise already!

With the return of the Federation of Korean Trade Unions (FKTU) to the bargaining table yesterday, the tripartite committee for labor reforms by labor, management and the government has returned to talks after a 140-day hiatus since April. We welcome the resumption of the talks to find ways to turn our supine economy around amid deteriorating economic environments at home and abroad, including continuing tremors from the Greek crisis, highly alarming signals coming out of China as well as the rapid increase of Korea's household debt.

There's another reason for the tripartite committee to hammer out a consensus on the suspended labor reforms. With a new law extending the retirement age from 55 to 60 going into effect next year, our economy could face a colossal employment crisis without a grand compromise between labor and companies. Advanced economies such as Germany and Sweden wrapped up their labor reforms one or two decades ago. Their continuous growth signifies the importance of labor reforms in ramping up national competitiveness especially of mature economies.

The unions and companies must find a way out of the prisoner's dilemma to avoid harsh criticism that they tried to take our young generation hostage for their own sakes. Here, the FKTU's role is particularly important. Before returning to the table, the umbrella union group threatened to not accept any modification of employment rules for the peak wage system to take root in the corporate sector as well as new guidelines for the dismissal of low-performing workers.

But that's not the core of labor reform. Most urgent is how to address the alarming polarization of our economy between salaried workers and part-time employees; between big companies and small; and between contractors and subcontractors. Also crucial are how to enhance the flexibility of labor, trim working hours and revamp the current wage systems. The umbrella union's knee-jerk rejection of a grand compromise translates into a self-proclamation of an aristocratic union bent on protecting the top 10 percent of workers.

The government must do its best as a mediator, but at the same time offer clear deadlines for striking a deal. Just in case, it must have a Plan B as well. The clock is ticking. The committee must fix pivotal issues like the revamping of our wage systems and the reduction of Korea's infamously long working hours before it's too late. We urge all parties involved to demonstrate maturity in reaching a grand consensus. The future depends on it.
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