[fn Editorial] Legalization of Equal Pay for Equal Work, Wage System Reform Comes First

The government is pushing for the legalization of equal pay for equal work within this year, aiming for implementation as early as the second half of next year. The National Planning Committee's recently announced five-year national operation plan includes the promotion of equal pay for equal work legislation. Equal pay for equal work literally means guaranteeing the same treatment for performing the same tasks. It aims to provide the same wages and benefits regardless of employment type or gender, which is a sentiment that no one would disagree with.

It is fundamentally unreasonable to have differences in pay for the same work. The widening gap is also a problem. According to a survey by the National Statistical Office, as of August last year, the average monthly wage for regular workers was 3.79 million won, while non-regular workers earned 2.04 million won. The gap is 1.75 million won, almost half of regular workers' wages. Compared to five years ago when the difference was 1.43 million won, the situation has worsened. The gap widens every year, and a way to improve it must be found.

The problem is that the standards for equal pay for equal work are ambiguous, and there are numerous challenges, such as the backlash from uniform wage increases. There are outdated practices in the labor field that need urgent resolution, and forcing equal pay without addressing these could lead to uncontrollable damage. For small and medium-sized enterprises, it could become unsustainable to bear labor costs. It is desirable to first amend outdated systems and then promote equal pay for equal work. The policy priorities need to be reorganized.

The judgment of the value of labor is also unclear. Although it is said that factors such as skills, effort, responsibility, working conditions, education, experience, and years of service will be considered, there is a high potential for disputes. Even for the same job, there can be differences between skilled and unskilled workers. Therefore, rational and objective standards for equal work must be established first. If this task does not proceed smoothly, the job of comparing and deciding job value may fall to the courts.

Above all, for equal pay for equal work to be possible, the improvement of the seniority-based pay system, where wages automatically increase with each passing year regardless of job value, must precede. Job-based pay and performance-based pay, which calculate wages based on job characteristics, importance, difficulty, and skill level, are key tasks of labor reform. The problems of the existing seniority-based pay system have been pointed out countless times. The government, regardless of conservative or progressive, has agreed on the need to reform the wage system. However, it has not been realized due to the strong aristocratic unions.

To improve the poor treatment of non-regular workers, the excessive protection of regular workers in large companies must be reduced, and unions must relinquish their vested interests. Considering the limited employment costs of companies, the high wages of regular workers in large companies are based on the sacrifice of non-regular workers. The root of polarization, where large companies cannot hire new employees and small companies cannot find workers, lies here.

Ultimately, to improve the dual structure of the labor market, labor flexibility must be increased, and the uniform wage system must be reformed quickly. Convincing the strong unions that prioritize the interests of regular workers in large companies is the government's responsibility. The harm of the privileges of regular workers is also serious for young people. Young people cannot find jobs due to the fortress-like barrier of regular employment. More than 400,000 young people in their 20s are just resting in lethargy. Labor reform must be prioritized to increase the vitality of society as a whole and resolve market polarization. Excessive union-biased legislation should be restrained, and efforts should be made for sufficient discussion and social consensus.