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(Working Paper 2018-07) Job Grade and Wage System of Indefinite-term Contract Workers in Public Sector (Working Paper 2018-07) Job Grade and Wage System of Indefinite-term Contract Workers in Public Sector
보고서명

(Working Paper 2018-07) Job Grade and Wage System of Indefinite-term Contract Workers in Public Sector

보고서명(영문)

(Working Paper 2018-07) Job Grade and Wage System of Indefinite-term Contract Workers in Public Sector

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  • I. The Need for Job Management and a Wage System in the Public Sector
    Korea's new administration, inaugurated in May 2017, has been promoting the permanent employment of non-regular workers as an important task of its job policy. The President himself visited the Incheon International Airport Corporation and declared that he would pursue a policy of converting non-regular to regular status to public-sector non-regular workers engaged in “jobs of a permanent and continuous nature.” The reason behind the government's strong drive for such conversion lies in the recognition of the problem that the Korean labor market is increasingly polarized with gaps in labor conditions and treatment between regular and non-regular workers, generating a highly dual structure, social hierarchy and status differences.
    As of the end of July 2017, there are about 2.17 million workers in the public sector, corresponding to 8.1% of all workers employed in Korea (26.73 million people) and 10.9% of all workers employed by business owners (19.88 million people). Considering that the public sector accounts for an average of 21% of total employment in OECD member countries1), Korea's employment in the public sector remains at a low level, which is still less than half that of OECD countries.
    Of the 217,000 public sector employees in Korea, there are approximately 416,000 non-regular workers (directly employed workers with a fixed-term contract + temporary agency workers + workers provided by contract firms),accounting for about 19.2% of the public sector employment.
    In the private sector, the number of non-regular employees is 6.54 million, accounting for 32.9% of the private sector employment much higher than the proportion of non-regular workers in the public sector. By granting regular status to non-regular workers previously used to perform jobs of a permanent and continuous nature and putting most of them on indefinite-term contracts, the new government attempts to put a stepping stone between regular and non-regular workers in the public sector, thereby laying the foundation for reforming the highly dualized labor market. In other words, the government expects that such move in the public sector would serve to narrow the gap between regular and non-regular employees, and even spread to the private sector. Given the current labor market reality of Korea, in this paper, we aim to discuss and present several effective measures to build a stable foundation to implement the principle of “equal pay for equal work” in the public sector in the process of converting non-regular employees to permanent workers.

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