ECONOMY

Public-sector labor panel relaunches as statutory body; unions demand end to sunset clause

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Kim Yong-hun
Published : Sept. 18, 2026 - 16:00:00
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Policy scope expanded to cover dispatched, subcontracted and outsourced workers

Unions call for unified wage system, retirement age of 65, end to welfare disparities

'Budget constraints must not block agreements as they did before'

Lee Man-jae, head of the Seoul chapter of the National Public Service and Transport Workers' Union's school public-service workers' division, speaks at a press conference held June 9 in front of the Seoul Metropolitan Office of Education in Yongsan-gu, Seoul. The event, organized to denounce heat-labor conditions at schools and launch a 2026 heat-wave monitoring team, called for halting high-heat kitchen work during heat advisories, installing cooling systems in cleaning workers' spaces and guaranteeing proper rest facilities for school workers. [Yonhap]
Lee Man-jae, head of the Seoul chapter of the National Public Service and Transport Workers' Union's school public-service workers' division, speaks at a press conference held June 9 in front of the Seoul Metropolitan Office of Education in Yongsan-gu, Seoul. The event, organized to denounce heat-labor conditions at schools and launch a 2026 heat-wave monitoring team, called for halting high-heat kitchen work during heat advisories, installing cooling systems in cleaning workers' spaces and guaranteeing proper rest facilities for school workers. [Yonhap]

A government committee tasked with improving employment stability and working conditions for non-regular workers in the public sector officially launched Friday as a statutory body under the prime minister. Labor groups agreed to participate but demanded abolition of a five-year sunset clause and called on fiscal authorities to take direct responsibility for implementing any agreements reached.

The Ministry of Employment and Labor said it held the inaugural ceremony and first meeting of the Public Service Workers Committee at Government Complex Seoul on Friday — the first day the Act on the Establishment and Operation of the Public Service Workers Committee, enacted in February, took effect.

The committee is a deliberative and coordinating body that reviews policies and systems related to employment, wages, working conditions, personnel management, labor relations and education for non-regular public-sector workers, including public service workers.

The new committee carries stronger legal standing and a broader membership than its predecessor, which operated from March 2020 to March 2023. The first committee was an advisory body based on a prime ministerial directive; the new one is a statutory committee formally attached to the prime minister's office under an act of law.

Its policy scope has also been expanded from public service workers and fixed-term employees to include dispatched, subcontracted and outsourced workers. Unlike the first committee, which was dominated by government officials, the new body directly includes representatives from labor, management and academia.

Im Gi-geun, head of the Office for Government Policy Coordination, will chair the committee. Deputy Minister of Employment and Labor Kwon Chang-jun serves as the committee's lead negotiator, and the body comprises 30 members drawn from related ministries — including the Ministry of Economy and Finance, Ministry of Education, Ministry of Interior and Safety, Ministry of Planning and Budget and Ministry of Personnel Management — as well as labor, management and expert representatives.

Labor groups, however, expressed concern about the committee's five-year sunset provision and the feasibility of implementing agreements that require budget commitments.

The Korean Public Service and Transport Workers' Union held a press conference in front of Government Complex Seoul ahead of the launch ceremony, calling for the committee to be made permanent and for fiscal authorities to participate actively.

Eom Gil-yong, the union's chairman and a committee member, said wage levels, employment security and the elimination of discrimination against non-regular public-sector workers are issues that must be addressed on an ongoing basis. "The committee must be made permanent to ensure continuity and stability in the discussions," he said.

He particularly urged the Ministry of Planning and Budget and the Ministry of Economy and Finance to take responsibility from the negotiating stage through to implementation, saying the committee must not repeat the experience of the first round, when agreed improvements to working conditions were not properly reflected in the budget process.

Labor groups plan to raise demands in sector-specific subcommittees for a unified wage system, elimination of disparities in allowances and welfare benefits, legal recognition of public service worker status, and an extension of the mandatory retirement age to 65. For public service workers at central government agencies, they are calling for a seniority-based wage system and an end to disparities in family allowances, welfare points, long-service bonuses and performance pay.

For the public institution sector, labor groups proposed setting the appropriate wage for indefinite-contract workers at no less than 118 percent of the minimum wage and establishing a pay system that reflects length of service and skill level. For subsidiary company workers, they called for abolishing the labor-cost bid rate and vacancy settlement system, securing adequate staffing levels, and closing the welfare gap with parent companies.

In the education sector, the groups identified low wages, unpaid leave during school vacations, job insecurity and staff shortages as the core agenda items. For the private outsourcing sector, they proposed expanding direct public operation, guaranteeing employment succession and introducing a seniority-based wage system.

The committee will operate through a multilayered structure comprising the main committee, a working committee, a development council and sector-specific subcommittees. The main committee will make final decisions on policy plans and discussion outcomes, while the sector-specific subcommittees will handle issues from individual fields — central government agencies, local governments, educational institutions, public institutions, subsidiary companies and private outsourcing.

At its first meeting Friday, the committee approved its operating plan, rules of procedure and the composition of the working committee. It plans to finalize the membership of the sector-specific subcommittees and select specific discussion topics going forward.

Committee Chair Im said a stable dialogue framework had been established for ongoing discussion of employment and working-condition issues facing public-sector workers. "The government will fulfill its responsibilities as a model employer, and we will create an exemplary case of social consensus in which labor, government and experts work together to reach agreement," he said.


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This content was produced with the assistance of AI translation services.

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