Sejong: Industry Minister Kim Jung-kwan on Monday called for cooperation between labor and management, stressing that the South Korean economy is facing strong headwinds due to the persisting turmoil in the Middle East. Kim made the call in a meeting with Kim Dong-myeong, head of the Federation of Korean Trade Unions (FKTU), one of the biggest umbrella labor unions here. It marked the first time since 2006 an industry minister and an FKTU leader held a meeting.
According to Yonhap News Agency, Kim emphasized that the ongoing conflict in the Middle East poses a significant crisis to the South Korean economy and the overall industry. To overcome these challenging times, he urged both labor and management to focus their efforts on tackling the crisis and to avoid unnecessary conflicts. He also appealed to the labor sector to engage in the country's energy-saving initiatives to ensure stable energy supplies.
The government has recently asked the private sector to voluntarily participate in a five-day vehicle rotation program and to temporarily adjust working hours. This initiative aims to balance traffic demand for effective energy consumption amid oil supply disruptions caused by the Iran war.
Addressing concerns about potential job reductions due to the artificial intelligence (AI) transformation of manufacturing industries, the minister called for the labor union community's support. He stressed that jobs can be safeguarded when companies can swiftly adapt to major industrial shifts and maintain their competitiveness. The government plans to expand incentives to encourage more corporate investment in different regions while maintaining communication with labor unions to help create quality jobs.
Kim is scheduled to hold a separate meeting with the leader of another major umbrella union, the Korean Confederation of Trade Unions, on Tuesday, as stated by the Ministry of Trade, Industry and Resources.