[Photo by Namkung Jinwoong = timeid@ajunews.com]
The government of South Korea's new liberal President Moon Jae-in took crucial pro-union steps to abolish a performance-based incentive wage system which was pushed by Moon's conservative predecessor to introduce labor market flexibility in the public sector.
Under an order from expelled ex-president Park Geun-hye, 135 of South Korea's 143 public entities and state-run financial companies have introduced the incentive wage system despite protests by labor groups.
The Interior Ministry said Friday that policymakers agreed to scrap the system. State firms would be allowed to scrap or adopt it through spontaneous union-management negotiations without government intervention and pressure.
Government officials under Park's rule said the new system would provide a fair reward based on performance, urging state-run companies to dump an easy-going attitude and complacency. Workers have insisted it would result in lower wages and little job security.
Lim Chang-won = cwlim34@ajunews.com
reporter
Park Sae-jin
swatchsjp@ajunews.com
