In an interview with Aju Economy, Kim remarked, "The transition to AI and robotics cannot be solved by simply adopting models from other countries. Labor and management must collaborate and research together to create a roadmap for the future."
Urgent Need for Labor-Management Dialogue
- Having experienced the 1998 Hyundai layoffs, what should labor policy prioritize during the current AI industrial transition?
"The situation is different now. In 1998, workers suffered due to the mistakes of the government and employers during a large-scale restructuring. However, the impending employment instability is similar. Having gone through such an experience, we must prepare more thoroughly for the future. If there were models from other countries during this industrial transition, we could learn from them, but currently, there are none. Labor and management must work together to create a roadmap for the future."
- What institutional measures are necessary for job security during this industrial transition?
"The concerns of labor and management cannot be resolved through their discussions alone; social dialogue involving all stakeholders is necessary. I understand there is skepticism about social dialogue due to the shocks from the 1998 IMF crisis, but it is essential. We need not only immediate solutions but also a long-term approach to research and mitigate conflicts. Individual companies can seek solutions through labor-management advisory committees, while the entire industry should analyze and study crises through social dialogue."
- The debate over performance-based pay is intensifying among large corporations. How should this be viewed from a labor policy perspective?
"This is a delicate topic. When companies perform well and make profits, there is applause, but the value of workers' contributions is often downplayed, which should be avoided. Workers' shares must be recognized. However, performance pay is performance pay. We cannot use future costs as performance pay; we must consider the future as well. Therefore, I believe we need job security funds and social solidarity funds."
- Are you concerned that performance pay is becoming effectively treated as wages?
"Yes. Performance should remain as performance pay. It should not evolve beyond that. If performance pay becomes part of wages, will companies return wages during tough times? No. Having represented labor and served in public institutions, I believe it is problematic if the dialogue leans too far in one direction. Balance is always important."
- There are calls to legislate that performance pay should be determined at shareholder meetings rather than through labor negotiations.
"We need to consider whether this can be mandated legally, but performance pay should be properly distributed based on certain achievements. However, a labor culture overly focused on money is not desirable. We need to shift to an organizational culture that values work and personal life. The achievements of large corporations should not only benefit the company but also consider surrounding related industries and share socially."
- Some view the demands for performance pay from large corporate unions as 'privileged struggles,' which ties into the dual structure of the labor market.
"If we scold them like that, the parties involved will not accept it. The company's performance has been achieved, and there is a share of effort involved. Instead of pushing them into a situation where they are socially criticized, we should find alternative solutions. Just because large corporate workers earn more does not mean they should be hated. From a national perspective, they also pay a lot in taxes. The important thing is to continue efforts to share."
- What is needed to alleviate the entrenched dual structure of the labor market?
"In Ulsan, even subcontractors have relatively high income levels, but there is a significant sense of relative deprivation. There is a feeling that while Hyundai workers receive substantial performance pay, we receive much less. It is difficult to enforce equality due to different companies, but the primary contractor should create an environment that does not excessively lower the prices for subcontractors. We should support the creation of good companies and good labor unions. Viewing labor unions as social evils is not beneficial."
- Restoring social dialogue appears to be a key task for labor policy.
"Social dialogue is the most important. We cannot have a system where participation is contingent on what is offered. In fact, we have made mistakes from the start. There have been many wounds from past events like the legalization of the teachers' union, the legalization of the Korean Confederation of Trade Unions, and restructuring laws, but it is time to move beyond that. While it is important for labor, management, and government to address immediate issues, they must also play a role in continuously creating future policies."
- Should the Korean Confederation of Trade Unions participate in social dialogue at the Economic and Social Council?
"It seems that many representatives from various workplaces believe social dialogue is necessary, so the president of the Korean Confederation of Trade Unions must make a decision. Labor representatives should articulate their insights and concerns within that framework. If something is wrong, it is the representative's role to stop it. Merely shouting opposition from the sidelines will not change anything."
- The issue of youth employment is serious. What do you think the existing labor movement has overlooked?
"We must not treat youth as mere bystanders. If the Korean Confederation of Trade Unions is serious about youth issues, it must create policies that incorporate the voices of young people. The government should also do the same. A dedicated body focused on youth is necessary. Young people should be empowered to choose agendas, conceptualize them, and collaborate with relevant organizations to create policies."
- Are there any labor policy lessons from the labor-management relationship at Hyundai?
"The Hyundai union does not create extreme situations. Even during the harsh times of 1998, union members overcame challenges wisely, and Hyundai has now grown to a global top level. Both labor and management have a sense of loyalty to the company, and Chairman Euisun Chung possesses the ability to respect and communicate with employees, while the union also makes wise decisions amid a sense of crisis. This respect has been built through years of conflict and healing."
- How would you evaluate the labor policies of the Lee Jae-myung administration and Minister of Employment and Labor Kim Young-hoon over the past year?
"So far, I believe they have been doing very well. President Lee Jae-myung seems to work tirelessly, even on detailed issues. Minister Kim Young-hoon does not shy away from challenging agendas and has been seen actively addressing issues on the ground. However, there is a need for more focus on youth issues."
- Minister Kim Young-hoon recently sparked controversy by mentioning the need for social discussion on excess profits.
"Good ideas should be received positively. The issue of performance pay has become a social agenda, and as a minister, he must have significant concerns. It is not right to frame his thoughts as if they were decisions. If there are opposing views, they should be expressed adequately. If there are rational and scientific grounds, we should not hate them, even if we cannot support them. While positions may clash, it is crucial to find common ground."
- What should be the focus of future labor policies?
"It is entirely justifiable for both labor and management to express their positions. The key is to have a system that maintains balance. Institutions like labor-management advisory committees should support this and play a role in coordinating based on data and evidence. The core function of the social dialogue framework is to guide labor, management, and the Republic of Korea toward a shared future."
* This article has been translated by AI.
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