The new regional head of the Hyundai Motor’s labor union, the largest single union in the country, has pledged to introduce a “4-day workweek” starting next year. This commitment has reignited the debate over reduced working hours, often described as a “hot potato” in the industry.
On Dec. 6, Hyundai Motor’s union announced the results of the election for the 10th executive, or regional head, revealing that Moon Yong-moon secured victory with 18,807 votes, accounting for 53.2 percent, surpassing Lim Boo-gyu, who received 16,162 votes, representing 45.72 percent. The newly elected regional head, Moon, has pledged to introduce a comprehensive 4-day workweek, extend the retirement age, and implement bonuses at a rate of 900 percent.
Moon plans to initiate a pilot program by reducing the working hours on Fridays from the current eight hours to four hours at the Jeonju and Asan factories in 2024. Following this trial, the full implementation of the 4-day workweek is slated to commence from 2025.
Major corporations like Samsung Electronics, SK Group, and Kakao have already implemented flexible working hours equivalent to a 4.5-day workweek. In the case of POSCO, which concluded its wage negotiation last month, both labor and management agreed to introduce a bi-weekly 4-day workweek. Having already transitioned from a traditional 4-shift 3-rotation system to a 4-shift 2-rotation system, which has significantly increased the number of days off for employees, POSCO has now taken a step further by committing to a bi-weekly 4-day workweek.
Since June, Samsung Electronics has introduced a “Monthly Rest Day” policy, enabling employees to take a break on the Friday closest to the 21st of each month, coinciding with payday. SK hynix has also implemented a “Happy Friday” system since April of the previous year, allowing employees who work more than 80 hours over two weeks to take a day off without deducting additional leave. Furthermore, SK telecom has a similar system in place. Kakao has been practicing a 4-day workweek once a month.
Internationally, companies such as Unilever, Panasonic Holdings, and Mizuho Financial Group are either testing or already implementing a 4-day workweek. Some countries, including the United Kingdom, are analyzing the economic effects of implementing a 4-day workweek.
Despite the global trend toward a 4-day workweek, major South Korean companies are proceeding cautiously due to the rigid labor environment in the country. An executive from an economic organization, who requested anonymity, stated, “The productivity of domestic companies is already lower than that of competing countries, and the 40-hour workweek is only gradually becoming established. In such a situation, uniformly reducing working hours could undermine the international competitiveness of companies, and the ultimate impact will be borne by the people. There is a need to actively pursue institutional improvements, such as flexible working hours, to enhance productivity.”
Another official expressed concern, stating, “If large companies were to universally adopt a 4-day workweek, it could intensify the relative sense of deprivation among workers in small and medium-sized enterprises.” There are also voices pointing out potential issues such as increased work pressure due to shorter working hours, a decline in productivity, and the possibility of salary reductions.
Despite these concerns, the anticipation is that the debate over the implementation of the 4-day workweek will intensify, especially with the opposition and labor unions leading the discussion as the general election approaches in April next year. Lee Jae-myung, the leader of South Korea’s main opposition Democratic Party of Korea, stated in a party meeting on Nov. 15, “While other countries are moving towards a 4-day workweek, would it be right for us to increase working hours again? We will move towards a 4.5-day workweek.”
On the contrary, Yun Jae-ok, the floor leader of the ruling People Power Party, expressed concerns, stating, “The key question that the public raises when politicians talk about the 4.5-day workweek is whether they will receive the same salary for working fewer hours. If the same salary is not guaranteed, rather than improving the quality of life, the result could be the forced reduction of working hours.”