IRREGULAR WORKERS BILL REVISIONS WAYLAY NATIONAL

C O N F I D E N T I A L SEOUL 001050

SIPDIS

E.O. 12958: DECL: 07/02/2019
TAGS: KS KN PGOV PREL ELAB
SUBJECT: IRREGULAR WORKERS BILL REVISIONS WAYLAY NATIONAL
ASSEMBLY

Classified By: POL Joseph Y. Yun. Reasons 1.4 (b,d).


1. (C) Summary: The June session of the National Assembly,
which finally convened on June 26, has yet to hold a session,
remaining deadlocked over the issue of converting "irregular
workers" to regular status. In the absence of revision to
the relevant legislation by the June 30 deadline, the first
irregular workers have already been laid off and more will
soon follow. Neither the ruling Grand National Party (GNP)
nor the main opposition Democratic Party (DP) seem ready to
yield, and some of our interlocutors think it likely that the
Assembly could remain at loggerheads for the whole 30-day
session. In the coming days, the key will be who takes the
blame -- the DP for its obstructionism, the GNP for its
incompetence, or President Lee Myung-bak for his lack of
leadership on the issue. END SUMMARY.

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Irregular Workers
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2. (SBU) The bill governing irregular workers was passed in
November 2006 and entered into force on July 1, 2007. The
bill banned companies from discriminating against the roughly
700,000 irregular workers, who often perform the same duties
as regular workers but with lower wages, fewer benefits, and
without contracts. The 2007 legislation imposed a
requirement that companies convert irregular workers to
regular workers within two years after hiring them. The
legislation also included a two-year moratorium on the firing
of irregular workers to give the government time to develop
and implement policies that would support their conversion.
Immediately before the bill entered into force in 2007
several large companies fired their irregular staff so they
would not be bound by the moratorium; massive strikes ensued.



3. (SBU) This week marked the two-year anniversary of the
legislation and the end of the moratorium, meaning that any
irregular workers who have been working for two years or more
are vulnerable to lay-offs. Indeed the papers are rife today
with stories of people who have already lost their jobs,
including some who work for state-run enterprises.


4. (SBU) In order to prevent layoffs the Ministry of Labor
and GNP have long been arguing for a three-year extension of
the moratorium on firing such workers or converting them to
regular status. The DP has expressed support for a six-month
moratorium extension, but the minor Democratic Labor Party
and labor organizations strongly oppose another moratorium.
They argue that the government failed to take the necessary
steps during the first moratorium to support firms in
converting irregular workers. Another moratorium, they say,
will only prolong the problem.

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Committee Chair Choo Mi-ae Draws Fire
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5. (C) DP Representative Choo Mi-ae chairs the National
Assembly's Environment and Labor Committee, which has to pass
the revised bill containing the extension of the moratorium
before it can move forward to a plenary vote. Choo has
refused to convene the committee, however, until the
political parties and labor unions come to an agreement. GNP
lawmakers on the committee have met every morning and
afternoon since the June session started. Choo attended
every meeting; her absence would allow the ranking GNP
lawmaker to be acting Chair and call the committee to order.
Choo is taking heat from the GNP for her obstructionism as
well as from some within her own party who note that Choo was
behind the requirement for labor buy-in to the law's
revisions. The unions, our contacts say, have no intention
of compromising.

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Desperate Measures
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6. (SBU) On July 1, at an unannounced meeting of GNP
committee members, ranking GNP lawmaker Cho Won-jin convened

the Environment and Labor Committee and tabled the GNP's
proposed revisions. The GNP claimed that Choo Mi-ae refused
to convene the committee, making it lawful for the acting
Chair to do so. Meanwhile, the DP has filed ethics charges
against Cho Won-jin. This action does not move the bill
forward, but instead increases pressure on Choo Mi-ae and
National Assembly Speaker Kim Hyung-o, who yesterday
dismissed the possibility of using his power to send the bill
directly to the plenary.

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Comment
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7. (C) The DP continues to block all committee meetings --
not just the Labor and Environment Committee -- preventing
the National Assembly from making any progress on needed
economic reforms. The irregular workers bill has become the
lightening rod for inter- and intra-party conflict, but the
subtext is the government's proposed media reform bills. GNP
contacts have consistently reiterated their commitment to
passing media reform, while DP interlocutors are equally
emphatic about their opposition to the legislation. If the
DP breaks the logjam on irregular workers, the GNP could try
to push the media reform bill through the National Assembly.
Still, the DP is playing a risky game. If the Speaker
decides to start sending bills directly to the plenary where
the GNP has the majority, they could lose their ability to
influence legislation. That option, legal but frowned upon,
would only be viable if public sentiment turns decisively
against the DP.
STEPHENS