President Lee Jae-myung said at a meeting with Korean Confederation of Trade Unions (KCTU) leadership at the Blue House on the 10th, "Although the Fixed-Term Employment Act was created to encourage conversion to permanent employment, it has effectively become a 'law banning employment beyond two years.'" He also pointed out, "Measures intended to improve workers' conditions seem to be resulting in weakening workers' standing." At the National Economic Advisory Council meeting the previous day, he directly criticized the contradictory reality of 'non-regular worker protection law that drives out non-regular workers.' President Lee painfully identified the reality that a law introduced 20 years ago to protect workers has now become 'shackles' that mass-produce non-regular workers.
Many domestic companies have reluctantly adopted the practice of '1 year and 11 months' employment due to the Fixed-Term Employment Act. This was somewhat unavoidable given the rigidity of a labor market where dismissal is extremely restricted. Since firing becomes virtually impossible once workers are hired as permanent employees after two years, companies are reluctant to hire in the first place. This is likely what President Lee had in mind when he asked rhetorically, "The next generation will not be able to enjoy permanent positions," and "It seems unions are also fighting to maintain a certain number of jobs, but do you think that will work?" Indeed, in the labor market flexibility index...
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