Conglomerates in dilemma over manpower expansion

Major conglomerates are facing a dilemma over President Lee Jae-myung’s pro-labor policy of raising the legal retirement age, as it could prevent job creation for the younger generation, industry officials said Thursday. Lee’s major policies include the gradual extension of the retirement age from 60 to 65, along with introducing a 4.5-day workweek system. Both are drawing concerns from major business groups, as they are expected to increase labor costs and make it tough to ensure productivity under possibly reduced working hours. However, his proposals seem highly feasible thanks to the parliamentary majority of the ruling Democratic Party of Korea (DPK). The ruling bloc holds 167 seats in the 300-seat National Assembly. If both pledges pass the National Assembly, industry officials argue they will have to tighten their belts either by reducing recruitment of new employees or shrinking investment. “If the policies are realized, companies will have to cover more labor costs to pay for the experienced older workers for a longer period of time,” an official from a conglomerate said.Weiter zum vollständigen Artikel bei Korea Times Weiter zum vollständigen Artikel bei Korea Times