20.11.18

Agreement on Sustainable Development of Public Organizations

The representatives of government, labor unions and public interest members who participate in the Committee of Public Organizations under the Economic, Social and Labor Council (the ESLC) share the understanding that trust-based cooperative relations should be developed in order to seek sustainable development of the public sector, and agree to make active endeavors to realize the following with an aim to enhance participatory operation of the organizations and improve wage programs in a reasonable manner.

1 To operate participatory public organizations

□ Worker director for public organizations

1. The representatives shall propose promptly initiating the discussion on amendment to the Act on the Management of Public Institutions by the National Assembly to introduce the worker director program.

2. In advance of introducing the worker director program, the labor and management of public organizations shall ensure by voluntary agreement that the workers’ representatives can observe the Board of Directors’ meeting and speak at the meeting subject to the permission of the Chair. They shall work together to have a qualified person recommended by the labor union appointed as a non-executive director after following procedures prescribed under the current laws and regulations including the Act on the Management of Public Institutions.

□ Ethical and transparent management of public organizations

1. The representatives shall make concerted efforts to eliminate corruption and irregularities including recruiting scandal, sexual harassment at work or unfair influencing over suppliers.

2. The representatives shall propose promptly passing 3 proposed laws on social economy*.

* Framework Act on Realization of Social Values by Public Organizations, Framework Act on Social Economy, and Special Act on Purchase and Sales Support for Social Economy Enterprises’ Products

2 Sustainable wage program for public organizations

□ Wage (compensation) program for public organizations

1. The representatives shall work to revise the wage (compensation) program in a way that the objective value of job is reflected in wage.

2. The revision of job-oriented wage (compensation) program shall be pursued in a voluntary and phased manner based on the labor-management agreement at each public organization, by taking their unique conditions into account, instead of implementing it in a standardized or unilateral way.

□ Wage peak program for public organizations

1. The representatives shall seek to develop improvement measures for the program, including managing qualified workers.

2. The representatives shall make efforts to contribute to creating social value by leveraging qualified workers to support SME or venture companies.

3 Follow-up discussion

1. The labor-management dialogue shall be continued to conduct follow-up discussion on the sustainable wage program for public organizations.

November 18th 2020

Economic, Social and Labor Council

Committee of Public Organizations