Two Major Trade Union Federations Demand Legislation to Extend Retirement Age to 65 This Year... 'Cannot Accept Peak Wage System or Reemployment Approach'

On the 5th, the two major national trade union federations (Federation of Korean Trade Unions and Korean Confederation of Trade Unions) called for the enactment of legislation within this year to make it mandatory to extend the retirement age to 65, eradicate the practice of early retirement, and expand job opportunities for both young people and older workers.
The FKTU and KCTU held a press conference at the National Assembly of the Republic of Korea, declaring, 'Extending the retirement age is a pressing issue of our time and a demand of the people.'
The two major national trade union federations pointed out, 'Now that the Baby Boom Generation is beginning to retire en masse, if the current retirement age of 60 remains unchanged, they will face an income gap until they become eligible for the National Pension Service (NPS).' They added, 'Without extending the retirement age in a super-aged society, we cannot solve the problem of elderly poverty, and if we do not prepare now, we will face irreversible social costs.'
The labor sector criticized the business community's argument that extending the retirement age would reduce youth employment and worsen the dual labor market structure, stating, 'These employer claims are repeating the same fear-mongering tactics and excuses that were used a decade ago when the retirement age was made mandatory at 60.'
The labor sector also made clear its opposition to the peak wage system and reemployment approaches that the business community is proposing or has already implemented as alternatives for extending the retirement age or continued employment.
Labor representatives remarked, 'There are no statistics showing that the peak wage system has actually increased youth employment.' They further pointed out, 'On the contrary, it has led to significant wage cuts for middle-aged and older workers due to their age, and through ongoing restructuring such as voluntary retirement, workers under the peak wage system are being pushed to the brink of unemployment.'
They continued, 'Reemployment is a hiring method in which employers, at their discretion, only rehire those they want as contract workers, resulting in unfair wage reductions.' They emphasized, 'Through short-term repeated contracts, wages and working conditions are lowered, deepening job insecurity—a structure that the labor sector can never accept.'
The labor sector urged the government and the ruling party, stating, 'They are using ongoing social discussions as an excuse to remain ambiguous.' They called for decisive action, saying, 'It is time for the National Assembly of the Republic of Korea and the government to show legislative will and ignite the legislative engine.'
They also warned, 'If the new retirement age legislation is regressive or worsened compared to the bills currently pending in the National Assembly of the Republic of Korea, it will bring despair to the millions of workers and their families who are hoping for its passage.'
jhyuk@fnnews.com Kim Jun-hyuk Reporter