“Discussion of applying the same to sanitation workers aged 65”
Daegu, the first local government to push for extension of public service positions
Polytechnic University recently restored the retirement age for professors
Revising the Articles of Incorporation and Attracting Talented Talent
Limited to specific jobs with less burden on labor costs
Discussion on continued employment by the Economic and Social Affairs Committee and ‘temperature difference’
After the Ministry of the Interior and Safety decided to extend the retirement age of public officials from the current 60 years to the maximum age of 65, discussions on extending the retirement age are spreading throughout the ministry’s affiliated organizations. However, as it has so far been limited to specific positions where the burden of labor costs due to the extension of retirement age is not significant, there is a clear ‘temperature difference’ from the discussions taking place at the Economic, Social and Labor Committee (Gyeongsan Labor Committee), a social dialogue organization.
According to coverage on the 6th, the Korea Fire Industry & Technology Institute, a public institution under the National Fire Agency, is recently considering extending the retirement age for workers in certain positions responsible for facility management, such as security guards and cooks. The retirement age for environmental sanitation workers, which currently number about four, is 65, but the retirement age for certain other positions is 60, and a plan to extend this to 65 is being discussed.
A citizen on his way to work is adjusting his tie at Gwanghwamun intersection in Jongno-gu, Seoul. Newsis
An official at the Institute of Technology said, “There are four security and cook positions each, and we are considering raising the retirement age for these specific positions to 65, the same as that for sanitation workers.” He added, “The recent decision by the Ministry of Public Administration and Security has become a catalyst.” The explanation is that the news that the Ministry of Public Administration and Security decided to extend the retirement age of public officials last month sparked the discussion.
The Ministry of Public Administration and Security has decided to gradually extend the retirement age of about 2,300 public officials to 65. This is the first central government agency to extend the retirement age of all public servants, excluding police officers.
The decision of the Ministry of Public Administration and Security opens a way for public institutions to discuss extending the retirement age. In the case of the National Fire Agency, the retirement age for certain positions such as cleaners, cooks, and security guards is 65, but the retirement age for other public servants such as administrative and research workers is 60.
The National Fire Agency said, “We plan to consult when occupations that do not operate with a retirement age of 65 request consultation on extending the retirement age.” Daegu City also recently announced that it would be the first local government to gradually extend the retirement age of public servants.
Photo = Newsis
Korea Polytechnic University, under the Ministry of Employment and Labor, revised its personnel articles of association last month and raised the retirement age for professors from 60 to 65. According to the Higher Education Act, the retirement age for university professors is 65, but polytechnics have gradually lowered the retirement age since 2006 through separate articles of incorporation. The goal was to innovate the personnel system in accordance with the ‘Public Training Infrastructure Innovation Direction’ announced by the Ministry of Employment and Labor in October 2005. However, internal opinions persisted that the retirement age of professors was 5 years different from that of other universities, which was disadvantageous in hiring competent professors, and eventually the university chose to return to the retirement age of 65.
The commonality of recent movements to extend the retirement age in public institutions, including the Ministry of Public Administration and Security, is that there is no significant cost burden. Civil servants are permanent contract workers with guaranteed retirement age, and the majority are facility management positions, including civil servants. Most facility management positions do not adopt a salary system, but rather a job salary system in which salaries vary depending on the importance, difficulty, and level of responsibility of the work. This means that the wage gap between new workers and long-experienced workers is not large.
On the other hand, the pace of discussions on continued employment by the ‘Continued Employment Committee in Response to Demographic Changes’ within the Economic and Labor Affairs Committee is slow. This is because companies are concerned about costs.
Photo = Newsis
According to the ‘Survey of Corporate Perceptions on Senior Employment Policies’ released by the Korea Economic Association the previous day, 67.8% of companies said that they would feel a burden on management if the retirement age is extended. The most common reason for feeling burdened was ‘increased burden of labor costs due to seniority and salary system’ (26.0%). According to the Ministry of Employment and Labor, as of 2022, 55.2% of workplaces with 100 or more employees have introduced the salary level, and the ratio reaches 68% of workplaces with 1,000 or more employees.
At the Continuing Employment Committee, the labor community’s position is that the legal retirement age should be gradually extended to 65 in line with the national pension eligibility age without a wage cut. As the gap with the management community, which calls for ‘wage system reform’ as a premise for discussions on continued employment, has not been narrowed, the labor community announced at the 7th meeting held on the 17th of last month that it is also considering ‘a plan to extend the retirement age in stages for small and medium-sized enterprises first.’ This is because small and medium-sized businesses have a greater demand for older workers, and securing human resources is more urgent compared to large corporations or public institutions.
However, even if the labor community proposes this plan, it is unlikely that the management community will accept it. Lim Young-tae, head of the employment and social policy division of the Korea Employers Federation, said, “The management community, whether small or large companies, is opposed to extending the legal retirement age without reforming the wage system.”
Reporters Lee Ji-min and Lee Byeong-hoon
(ⓒ Segye Ilbo & Segye.com, unauthorized reproduction and redistribution prohibited)
Source: www.segye.com
