Seven out of 10 South Korean companies predict worsened labor relations this year under pro-labor Moon Jae-in government.

According to a survey done by the Korea Employers Federation on Wednesday, 72.8 percent of 236 firms forecast instability in labor relations this year. The biggest concern is legal dispute over labor policies including wage issues. There are 22 pending lawsuits related to wage premium for holiday work at the Supreme Court.

Employers also were concerned by stronger union under pro-labor government and labor-friendly policies. Labor voices have gotten louder as the government is pursuing policies to strengthen workers’ interests.

President Moon with liberal backbone under so-called income-led economic policy has upped minimum wage by double digits, cut working hours, and are pressuring employers to hire irregular workers on permanent basis.

About 31.6 percent of the employers said conflicts with partnered firms and contract workers would increase amid rising legal disputes over employees’ status. They said that the biggest issue in this year’s labor negotiations would be a pay raise, cut in working hours, expansion of welfare policies and reform of wage system.

By Moon Ji-woong and Choi Mira

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]