As the government decided to launch "Korea Generation," which will integrate the five power generation subsidiaries under Korea Electric Power Corporation (KEPCO) into a single entity in October next year, related labor unions voiced that wages should be leveled up.
The Ministry of Climate, Energy and Environment, the lead agency overseeing the integration of the power generation public corporations, said it will discuss working conditions, including wages, at the "Power Generation Public Corporations Integration Preparatory Committee (hereafter the Preparatory Committee)," to be formed in September. The Preparatory Committee will be chaired by the ministry's second Vice Minister and is expected to discuss and decide key matters such as the integrated company's organizational structure, staffing, operating system, integration procedures, and overseas business.
Lee Young-jo, president of Korea Midland Power, said at the "Roundtable on Integration Plans for Power Generation Public Corporations" held on the 4th at the Korea Electric Power Corporation (KEPCO) Namseoul Headquarters in Yeongdeungpo-gu, Seoul, "Employment succession without workforce cuts and employment stability must be ensured so that an environment is created where members can work with peace of mind while boosting morale," adding, "Over the past 25 years, the five power generation public corporations have competed, resulting in differences across personnel, compensation, and welfare systems, and during the integration process, no unilateral sacrifice should be forced on one side, nor should treatment be downgraded."
Lee Gap-hee, union Chairperson of Korea East-West Power, went a step further, saying that as a condition for the successful integration of the five power generation public corporations, "working conditions and wages should be leveled up." Noh Cheol-min, senior Vice Chairperson of the Korean Public and Industrial Workers' Federation, also said, "During the integration process, employment and headcount should be guaranteed, and a rollback of labor conditions must be prevented," adding, "Each institution has different personnel systems, collective agreements, work rules, and wages, and under the principle of employment guarantees, wages, welfare, and incentives should be leveled up."
Labor unions related to the power generation public corporations also argued that, as field personnel are being seconded during the integration preparation process, there should be changes to headcount and total labor cost standards. Senior Vice Chairperson Noh emphasized, "On the ground, there are complaints of manpower shortages due to the return of headcount for coal-fired plants slated for closure and the non-reflection of headcount for new projects," adding, "Moreover, if the integrated power generation company is to fully expand into renewable energy, it will simultaneously need personnel to safely operate existing plants and personnel to develop new businesses."
Noh, the senior Vice Chairperson, continued, "To secure new personnel needed for the government's energy transition, the current approach to managing headcount and total labor costs at public institutions has its limits," and requested, "The ministry should establish special headcount allocations for the energy transition and special provisions for total labor costs."
The ministry left all possibilities open. Moon Yang-taek, director-general for power industry policy at the ministry, said regarding the leveling up of working conditions, "Saying we will level up all conditions is premature at this stage," adding, "Within the Preparatory Committee, we will raise what should be raised, and adjust what should be adjusted through consultation." Moon also said, "If we insist on leveling up, as seen in several public corporation integration cases, the working-condition systems will have to run separately for several years after integration," adding, "We will not prejudge and will discuss this thoroughly."