The People Power Party announced on the 17th that it would launch a wage system reform. The plan aims to restructure the current seniority-based pay system into a performance-based compensation system to establish a fair reward structure and introduce flexible retirement and continued employment systems to create a job structure for generational coexistence.
Chairperson Kwon Young-se said during the emergency response committee meeting that morning, “I will talk about our party's wage system reform policies aimed at creating a fair compensation system and a job structure for generational coexistence.”
He added, “We intend to promote the restructuring of the wage system centered on performance-based compensation.” He noted, “While maintaining the total aggregates of wages, we will reduce the wage gap between entry-level and experienced employees and change the structure to one where performance and responsibility are linked to inject vitality into organizations.”
Chairperson Kwon emphasized, “A society where appropriate rewards follow performance and skills and efforts determine salaries is the beginning of a fair Republic of Korea.”
He pointed out, “In workplaces where hierarchy precedes skills and rank takes priority over performance, young people will inevitably become frustrated, and corporations will fall behind in global competition. Our wage system still remains stuck in the industrialization era. Within the outdated framework of a seniority-based wage system, it is difficult for youth creativity and corporate innovation to flourish, and sustainable development of our society cannot be guaranteed.”
He further emphasized, “A structure where rewards are given based on performance and an environment where experienced middle-aged workers can continue to work are pathways to sustainable growth that go hand in hand, not separately.”
He added, “We will implement ‘flexible retirement’ and ‘continued employment systems.’ Chairperson Kwon said, “We will create a structure where the experience of middle-aged workers can continue to be utilized in our society, providing more opportunities for the youth, appropriate respect for the middle-aged, and stability in living conditions for the elderly.”
Chairperson Kwon stated, “In particular, we will ensure real opportunities for capable young talents.”
He continued, “On the one hand, despite the reality of aging and significant changes in various conditions, including public health, the current retirement age remains at 60. People who are fully capable and willing to work must leave their jobs simply due to being older and are bound by a mechanical retirement age. This causes a serious mismatch with the upcoming retirement age, which is set to rise to 63 and eventually to 65.” He concluded, “Retirement should not be the end but the beginning of turning experience into an asset.”