Workers to get half of salary during forced non-paid leave

Labor Ministry plans to focus on creating youth jobs in 2012  


Workers forced to take non-paid leave will receive up to half of their regular salary for a maximum of six months starting from the second half of next year, the government said Wednesday.

The Ministry of Labor also said it aims to create some 71,000 new jobs for youth workers and provide cash incentives to companies which reduce working hours and hire more staff in 2012.

“With low growth forecast for the domestic economy in 2012 and global instability persisting, the Labor Ministry aims to provide adequate response measures to prevent the economic woes from leading to job insecurity,” Labor Minister Lee Chae-pil told a press conference, unveiling the ministry’s policy goals for 2012.

The ministry reported the plans to President Lee Myung-bak earlier in the day.

The livelihood subsidy for non-paid leave is envisioned to come from the national employment insurance program. Officials hope the measure will help alleviate the burden of both workers and employers at companies which are struggling to stay afloat, and help avoid layoffs.

Koreans have demonstrated a particular aversion to layoffs: A layoff by Hanjin Heavy Industries & Construction Co. led to an 11-month labor struggle, becoming a major social and political issue. Its union and management struck a deal in November, which saw the management agreeing to rehire all 94 laid-off workers within a year and provision of 20 million won each in compensation.

The Labor Ministry was first to report its 2012 plans, which Lee said reflects the priority of jobs for his administration.

“The top priority is jobs in 2012,” Lee was quoted as saying by his spokesperson Park Jung-ha.

Korea’s jobless rate is relatively low compared to Western countries, standing at 2.9 percent in November. Yet, many say the official figure fails to show the hardship faced by Korean workers, as non-regular jobs are quickly replacing quality jobs with permanent employment status and above-average pay.

Next year’s labor policies will have a clear focus on creating youth jobs, in particular, which analysts say reflects Lee’s efforts to appease young voters, who turned against the Grand National Party and gave overwhelming support to the liberal opposition in recent by-elections.

The unemployment rate among those under 30 is 6.8 percent, but private studies suggest nearly one in five youth workers are jobless.

By Lee Sun-young (milaya@heraldcorp.com)