A small and medium-sized auto parts manufacturing company with about 50 employees, including foreigners, is facing a crisis due to major presidential candidates putting forward a promise for a '4.5-day workweek,' anticipating changes in working hours after the election. Currently, under the '52-hour workweek system,' employees experience difficulties because they cannot flexibly adjust their working hours based on varying workloads. If a '4.5-day workweek,' which reduces working days by about half a day from the existing 5-day workweek, is implemented, they are uncertain whether they can meet delivery deadlines for customers.
The representative of this company noted, "Ultimately, we will have to choose between reducing production or increasing manpower to finish work within the allotted time," adding, "The former hinders corporate growth, while the latter raises concerns about labor costs."
As presidential candidates from both sides advocate for a 4.5-day workweek, small and medium-sized enterprises voice concerns, stating it is a "policy made without an understanding of the field."
In particular, Lee Jae-myung, a presidential candidate from the Democratic Party of Korea, is strongly advocating for the 4.5-day workweek. The candidate stated, "I will shorten working hours below the average of the Organisation for Economic Co-operation and Development (OECD) countries," and added, "I will support the implementation of a 4.5-day workweek at a government-wide level."
◇ Increased labor costs with the introduction of a 4.5-day workweek... concerns over declining productivity
Currently, the labor scene in small and medium-sized enterprises operates under a 52-hour workweek. Workers in these enterprises typically work 8 hours a day for 5 days a week. It's a 5-day workweek. In addition, they work up to 12 hours of overtime per week.
Although the proposed 4.5-day workweek by the candidate has not yet detailed a specific method, it appears that there will be no reduction in overtime hours. In other words, the plan is to reduce the 40 hours worked over 5 days (8 hours a day) to 36 hours, with a structure of working 32 hours over 4 days (8 hours a day) and 4 hours on one morning, such as Friday. The 12 hours of overtime will still be allocated each week just like before.
However, it does not mean that corporations will be forced to comply by amending labor standards laws immediately. Instead, corporations will be allowed to choose between a 5-day or a 4.5-day workweek according to their situation. It is expected that if corporations operate under the 4.5-day workweek, incentives like labor cost support will be provided to ensure that this system takes root in the labor market.
However, small and medium-sized enterprises are concerned about declining productivity due to reduced working hours. They argue that naturally, production will inevitably decrease as working hours shrink.
A representative from a small and medium-sized enterprise manufacturing industrial metal parts for over 30 years stated, "We used to produce 100 units in a 5-day workweek, but producing the same 100 units in 4.5 days is not as easy as it sounds," and added, "We have to increase manpower to compensate for the reduced working hours, which will lead to labor cost burdens."
They also asserted, "While they say they will leave the decision of adopting a 4.5-day workweek to corporations, in reality, politicians are once again taking away corporate autonomy in the labor market to seize power."
Another representative from a manufacturing small and medium-sized enterprise expressed concerns about the chaos in the labor market. He stated, "If some small enterprises adopt a 4.5-day workweek and take Friday afternoons off while others stick to a full 5-day workweek, it could lead to polarization of work-life balance among small enterprise workers," adding, "Considering that the polarization issues between large and small enterprises are already worsening, I cannot predict what the aftermath will be if such issues arise within small enterprises as well."
◇ "Social discussions must consider the realities of small and medium-sized enterprises"
Experts point out that while the introduction of a 4.5-day workweek and the reduction of working hours align with the direction our economy and society should head towards, it is essential to fully consider the realities of small and medium-sized enterprises.
Cho Joo-hyun, head of the Korea SMEs & Startups Institute (KOSI), remarked, "Currently, there has not yet been a specific method proposed for the 4.5-day workweek. It is crucial to undergo social discussions, and both large corporations and small and medium-sized enterprises must be considered separately to develop a plan that fits the labor market in stages and allows corporations to apply it autonomously."
Lee Myung-ro, the head of the human resources policy department at the Korea Federation of Small and Medium Enterprises, explained, "First, it is essential to allow corporations to flexibly apply the 52-hour workweek, and then support small and medium-sized enterprises to enhance productivity and implement a 4.5-day workweek according to their business model and circumstances."