S. Korean president calls for wage cuts, job-sharing

(ATTN: UPDATES with reaction from labor organization, additional remarks, information)
By Byun Duk-kun
SEOUL, Jan. 15 (Yonhap) -- President Lee Myung-bak called Thursday for wage cuts
to create more jobs, one day after a government report showed the country's
employment market shrank for first time in over five years.

"The most urgent issue on our hands is to create jobs for the heads of
households," Lee was quoted as saying at a meeting of the Emergency Economy
Management Council. The presidential body was set up last week to paddle the
country out of the economic crisis.
Lee suggested the government promote "job-sharing" among workers, according to
the presidential office spokesman.
"I believe we should think of ways to promote job-sharing by cutting wages," the
president was quoted as saying by spokesman Lee Dong-kwan. The president added
that wage cuts would prompt employers to hire more workers.
The National Statistical Office said Wednesday the country lost 12,000 jobs last
month, marking the first contraction since October 2003.
Lee's call for wage cuts was immediately snubbed by one of the largest labor
organizations here, which claimed the government is toying around with numbers.
"Clearly, this tells us that the government is going to put on a show of numbers.
It is getting rid of good, stable jobs and only creating a larger number of
low-paying, unstable jobs and temporary positions," Woo Moon-sook, a spokesperson
for the Korean Confederation of Trade Unions, told Yonhap.
Woo noted her organization, too, has been promoting job-sharing, but by cutting
down on working hours.
"In short, the government is saying it will pass all the pains of the economic
crisis on to the laborers," she said.
The ruling Grand National Party (GNP) is currently seeking to allow employers to
pay less than the legal minimum wage to employees aged over 60 years old.
According to the party, its bill aims to provide increased job opportunities for
the elderly and retired.
The national human rights watchdog, however, has recommended the GNP revise or
withdraw the bill, saying it could seriously undermine the livelihood of
low-income families. Minimum wage currently stands at 4,000 won (US$2.93) an
hour.
Seoul has been struggling for some time to boost employment amid deteriorating
economic conditions. The president has said the current environment could push
South Korea's economy into an "unprecedented recession."
Lee also stressed the need to help non-regular workers, according to his spokesman.
"It is important that the government improve working conditions of irregular
workers and provide more job opportunities by executing its planned budget at an
early date," he was quoted as telling the council.
Kim Eun-hye, also spokesperson for the presidential office, later told reporters
that the president urged swift action by regional governments and private
businesses as well to create jobs.
"The government will take various measures, but I hope regional governments and
large conglomerates will see that they, too, have a social responsibility and
take swift actions," he was quoted as saying.
Thursday's council meeting, the second of its kind, was attended by a number of
ministers, including Labor Minister Lee Young-hee and chief crisis management
officers of all 14 government ministries.
bdk@yna.co.kr
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