In an interview with Aju Economy, Kim remarked, "The transition to AI and robotics cannot be solved by simply adopting models from other countries. Labor and management must work together to create a roadmap for the future."
Urgent Need for Labor-Management Dialogue
- Reflecting on the 1998 Hyundai layoffs, what should labor policy prioritize during the current AI industrial transition?
"The circumstances are different now. The 1998 layoffs were a result of government and employer failures, causing workers to bear the brunt of large-scale restructuring. However, the impending job insecurity is similar. Having experienced such a situation, we must prepare more thoroughly for what lies ahead. If there were a model from another country to learn from, we could adapt it, but currently, no such model exists. Labor and management must collaborate to create a transition roadmap for the future."
- What institutional measures are necessary for job security during this industrial transition?
"The concerns of labor and management cannot be resolved solely through their discussions; social dialogue involving all stakeholders is essential. I understand the skepticism surrounding social dialogue due to the shocks from the 1998 IMF crisis, but it is absolutely necessary. We need a body that not only creates immediate solutions but also researches long-term futures and mitigates points of conflict. Individual companies can seek solutions through labor-management advisory committees, while the industry as a whole should analyze and study crises through social dialogue."
- The debate over performance pay is intensifying among large corporations. How should this be viewed from a labor policy perspective?
"This is a delicate issue. When companies perform well and generate profits, they receive praise, but there is a tendency to undervalue the contributions of workers who dedicate their efforts. We must recognize the workers' share. However, performance pay is performance pay. We cannot use future costs as performance pay; we need to consider the future alongside current profits. Therefore, I believe a job security fund and a social solidarity fund are necessary."
- Are you concerned that performance pay may effectively become a fixed wage?
"Yes. Performance should remain as performance pay. It should not evolve beyond that. If performance pay becomes part of wages, will companies return wages during tough times? No. Having represented labor and served in public institutions, I believe it is problematic if the dialogue leans too heavily in one direction. Balance is always important."
- There are proposals to legislate that performance pay rates be determined at shareholder meetings rather than through labor negotiations. What are your thoughts?
"We need to consider whether this can be mandated legally, but performance pay should be properly allocated for certain achievements. However, a labor culture overly focused on money is not desirable. We need to shift towards an organizational culture that values work and personal life. The performance of large corporations should not just benefit the company but also consider surrounding industries and society as a whole."
- Some view the demands for performance pay from large unionized companies as a sign of entitlement. How does this relate to the dual structure of the labor market?
"If we scold them like that, the parties involved will not accept it. The company's performance has improved, and there is a share of effort that contributed to that. Instead of pushing them into a situation where they are socially criticized, we should find alternative ways to address this. Just because workers in large companies earn more does not mean they should be resented. From a national perspective, they also pay significant taxes. The key is to continue efforts to share."
- What is needed to alleviate the entrenched dual structure of the labor market?
"In Ulsan, even subcontractors have relatively high income levels, but there is a significant sense of relative deprivation. Workers feel that while Hyundai employees receive substantial performance pay, they do not. It is difficult to enforce equality due to differing companies, but the primary contractors should create an environment that does not excessively lower prices for subcontractors. We should encourage the development of good companies and labor unions. Viewing labor unions as social evils is not beneficial."
- Restoring social dialogue appears to be a key issue in labor policy.
"Social dialogue is paramount. We cannot operate on a system where participation is contingent on what is offered. In fact, we made a mistake at the outset. There are many wounds from past events like the legalization of the teachers' union, the legalization of the Korean Confederation of Trade Unions, and restructuring laws, but it is time to move beyond that. While it is important for labor-management relations to address immediate issues, they must also play a role in continuously developing future policies."
- Should the Korean Confederation of Trade Unions participate in social dialogue at the Economic and Social Council?
"It seems that many representatives from various workplaces recognize the need for social dialogue, so the president of the Korean Confederation of Trade Unions must make a decision. Labor representatives should articulate their insights and concerns within that framework. If something is wrong, it is the representative's role to intervene. Simply shouting opposition from the sidelines does not bring about change."
- The youth employment issue is serious. What do you think the existing labor movement has overlooked?
"We should not use youth as mere tokens. If the Korean Confederation of Trade Unions genuinely cares about youth issues, it must create policies that incorporate their voices. The government should do the same. We need a dedicated body focused on youth, empowering them to select and develop agendas and collaborate with relevant organizations to create policies."
- Are there aspects of labor policy in Hyundai's labor-management relations that could serve as a reference?
"The Hyundai union does not create extreme situations. Even during the harsh times of 1998, members overcame challenges wisely, and Hyundai has now grown to a global top-level company. Both labor and management have a sense of loyalty to the company, and Chairman Euisun Chung possesses the ability to respect and communicate with employees, while the union also makes wise decisions amid a sense of crisis. This structure of respect has been built through long-standing conflicts and wounds."
- How would you evaluate the first year of labor policy under President Lee Jae-myung and Minister of Employment and Labor Kim Young-hoon?
"So far, I believe they have been doing very well. President Lee seems to work tirelessly, even on detailed issues. Minister Kim is not shying away from difficult topics and is actively engaging on-site to resolve them. I have seen him address safety issues in Ulsan, working late into the night. However, there is a need to focus more on youth issues."
- Minister Kim's comments on the need for social discussion regarding excess profits sparked controversy. What are your thoughts?
"Good ideas should be received positively. The issue of performance pay has become a social topic, and as a minister, he must have significant concerns. It is inappropriate to frame his reflections as definitive decisions. If there are opposing views, they should be expressed adequately. If there are rational and scientific grounds, we should not harbor animosity, even if we cannot support them. While positions may clash, it is crucial to find common ground."
- Where should future labor policy focus?
"It is entirely justifiable for both labor and management to express their positions. The key is to have a system that maintains balance. Bodies like labor-management advisory committees should support this and play a role in coordinating discussions based on data and evidence. The core function of the social dialogue body is to guide labor, management, and South Korea towards a direction where they can coexist." }
* This article has been translated by AI.
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