The launch of a single integrated model for the five power generation public corporations (Korea South-East Power, Korea South-West Power, Korea Dongsuh Power, Korea Western Power, and Korea Midland Power) has been a long-standing wish of workers who have suffered in a partitioned state since the restructuring 20 years ago.
Nam Tae-seop, senior vice chair of the Korea Power Industry Labor Union Federation, said this during a discussion at the interim briefing on the study to redefine the role of power generation public corporations, held at the KEPCO Art Center in Seocho-gu, Seoul, on the 18th.
The panel discussion took place immediately after the release of interim research findings on the merger and consolidation of the five power generation public corporations. Samil PricewaterhouseCoopers, commissioned by the Ministry of Climate, Energy and Environment (MCEE), concluded that combining the five into a fully integrated corporation would be the most efficient. In response, Vice Chair Nam, attending on behalf of labor, expressed support for the integration.
Ten panelists from academia, labor, business, and environmental circles attended the discussion. Park Jong-bae, a professor in the Department of Electrical Engineering at Konkuk University, served as chair.
Academia agreed that bundling the five power generation firms into a single integrated corporation is reasonable, while noting the need to prepare for side effects that may arise during integration.
Kim Chang-hwan, a professor in the College of Engineering at Chung-Ang University, said, "I agree with integrating into a single institution, but a mere physical integration will not generate synergy," adding, "Because organizational culture, work methods, and pay systems differ, meticulous pre-coordination of internal systems is necessary."
Park Jong-bae, a professor in the Department of Electrical Engineering at Konkuk University, said, "When a large integrated corporation launches, a special body should be established to enhance internal efficiency and human resources (HR) systems," adding, "A special safety management system must also be built as business sites expand."
Some noted it was regrettable that the interim report lacked detailed explanations of the benefits and challenges of integration.
Sung Si-kyung, a professor in the Department of Public Policy at Dankook University, said, "The interim proposal on integrating the five power generation companies offers only justification and lacks concrete, detailed content," adding, "There are no clear principles for resolving conflicts between the generation companies and unions, and a practical roadmap outlining expected processes is needed."
Labor expressed active support for the full integration plan of the five power generation companies. In a study conducted in Apr. by Cho Young-sang, a professor in the Department of Industrial Engineering at Yonsei University, commissioned by the power federation, 7 out of 10 incumbent employees at generation companies were found to support integration.
Vice Chair Nam emphasized, "The principles of integration should be the expansion of renewable energy and the defense of the public nature of electric energy," adding, "Public corporations should actively enter renewable energy and move to develop overseas markets."
Song Min, executive vice chair of the Korean Federation of Public Industrial Labor Unions, said, "We should codify a 'just transition' that includes partner firms, local residents, and subsidiary workers who will be hit by the closure of coal power generation," adding, "It is necessary to set up a 'labor-government consultative body' for ongoing communication."
The climate ministry decided to compile opinions from experts and stakeholders and prepare a plan for reorganizing functions and restructuring the power generation public corporations by next month.