Anti-Labor Mega Zones: Fixed-Term Contracts Extended, 52-Hour Week Eased

The South Korean government is reportedly moving forward with a "Mega Zone Special Act" that includes significant labor deregulation, sparking strong opposition from labor unions. The proposed legislation, aimed at fostering advanced industries and balanced regional development through "mega zones," reportedly contains provisions to extend the maximum duration for fixed-term employment contracts from the current two years to four years. Additionally, it includes plans to expand the scope of dispatch work and exempt research and development (R&D) personnel from the 52-hour workweek limit.

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Isn't industrial competitiveness derived not from long working hours and the abuse of non-regular workers?

Labor organizations have vehemently criticized these proposals, denouncing them as a "labor reform" that will increase precarious employment and encourage excessive working hours. The "Act on the Protection of Fixed-Term and Part-Time Workers," enacted in 2006, originally limited fixed-term contracts to two years to prevent the abuse of non-regular employment, requiring conversion to regular status for longer-term positions. Previous conservative governments attempted to extend this period to four years but faced strong labor resistance, leading to the measures' failure.

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If we start dismantling the minimum social safety nets one by one, it's only a matter of time before they are expanded across the board. Hard-won labor rights are bound to be undermined.

The draft special act also reportedly includes plans to ease regulations on dispatch work, expanding the currently limited 32 authorized sectors. Furthermore, it proposes exempting workers earning above the top 3% income bracket within mega zones from overtime pay. The exemption of R&D workers from the 52-hour workweek, allowing for longer hours through a relaxed selective work hour system, is also a key point of contention.

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It is a clear labor 개악 (labor 악화, worsening). If pushed unilaterally, labor-government relations will deteriorate.

Labor unions argue that these changes represent a significant erosion of fundamental labor rights. They express concern that weakening social safety nets will inevitably lead to broader deregulation and a decline in worker protections. The Korean Confederation of Trade Unions (KCTU) has labeled the proposals as a "clear labor 개악 (labor 악화, worsening)," warning that unilateral implementation will damage labor-government relations. The Federation of Korean Trade Unions (FKTU) questions the premise that industrial competitiveness stems from long working hours and precarious employment, emphasizing that essential worker protections are being dismantled.

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The '2-year limit' was enshrined in the 'Act on the Protection of Fixed-Term and Part-Time Workers' to prevent the abuse of non-regular workers.