South Korean unions reached a rare agreement yesterday with management and government to ease labor militancy in a bid to end a prolonged economic slump.
The agreement came at a tripartite commission involving labor groups, business leaders and government officials, commission officials said.
The deal called for companies to avoid unnecessary job cuts, while unions agreed to cooperate for "stable wages" over the next two years.
In return, the government will remove restrictions limiting corporate activities and provide financial and tax assistance for creating jobs.
"We agree to work closely together, based on common awareness that cooperation between unions, management and government is the key to our national development," the agreement read.
The accord needs approval from trade unions, but government officials said it would boost productivity.
Unions staged violent protests last year against new laws aimed at curbing union power and giving employers more freedom to hire and fire.
Companies have demanded tighter restrictions on strike pay, arguing South Korea's competitiveness is suffering because of high labor costs and strikes, which have alarmed foreign investors and worsened last year's recession.
President Roh Moo-Hyun has said tackling unemployment was his top economic goal for this year. South Korea's unemployment rate rose to 3.4 percent last year from 3.1 percent a year ago.
Exports, the engine of South Korea's growth, are strong but government officials say it remains uncertain when domestic consumption and corporate investment will recover in real terms.
The economy was estimated to have grown by less than three percent last year, compared to 6.3 percent in the previous year.
RSS