Korea's
labor market shuns disabled 
 
 
 
A 22-year-old man
surnamed Yoon with a mild intellectual disability has been looking for a job
for more than a year. 
He would not have
minded a simple job, such as one carrying luggage. Even finding a job like that
has proved to be a hard task, as most of the employers that he encountered were
reluctant to hire him, even though he was able to communicate and work
with others.
“There are limited
workplaces I can apply for. Some have offered a job but the monthly wage they
offered was less than 500,000 won ($463),” he said. 
Despite the
government’s efforts to improve employment rights and conditions, the disabled
still face hurdles in entering the labor market as the nation marks its 35th
annual Disabled Persons Day on Monday.
According to Korea
Employment Agency for the Disabled, only 37 percent of 2.4 million disabled
people aged 15 or older in the country were employed last year, which is 24
percent lower than Korea’s overall employment rate. This is also 7 percent
lower than the average rate of other countries in the Organization for Economic
Cooperation and Development in 2010. 
At the same time,
the unemployment rate of the disabled was 6.6 percent, nearly double the
country’s overall unemployment rate.
For disabled
people, there are two options for seeking work: competing with in the regular
recruiting market, or working at special workplaces designated as “sheltered
employment facilities” set up for the disabled. 
As part of the
efforts to boost working opportunities for disabled people, the Ministry of
Employment and Labor has mandated that public companies with over 50
employees fill at least 3 percent their positions with disabled workers. The
quota for private companies is 2.7 percent. 
If the company does
not follow the quota mandate, it may face a fine of 600,000 won to 1 million
won per disabled worker a month. The penalty is only charged to companies with
more than 100 employees. The government is aiming to raise the quota to 3.4
percent for public companies and 3.1 percent for private companies,
respectively, by 2019. 
But the quota
mandate, in reality, has limited impact. The larger the companies are, the more
they tend to choose to pay the fine.
According to
government data from last year, smaller companies showed a tendency to better
meet the mandate. Companies with under 300 employees for instance, filled an
average of 2.84 percent of their workforces with disabled people. On the other
hand, the figure was just 1.97 percent for people with over 1,000 workers.
Of the top 30
largest companies in Korea, only nine, including five state-owned companies,
met their obligations.
Conglomerates such as Samsung and LG paid over 13 billion won in
fines last year.
“The lower quota
fulfillment among the conglomerates suggests that money is not an issue to
them. What really matters is probably the employers’ perception toward the
workers with disabilities,” said occupational rehabilitation professor Na
Woon-hwan at Daegu University. 
“Many assume that
people with disabilities will likely cause more safety accidents or not work
well. But that’s just a misunderstanding.”
 
Dark side of special work opportunities
In a bid to offer
better work opportunities and support job training for the disabled, the labor
authorities have promoted the establishment of sheltered employment facilities,
which provide jobs only for the disabled who are otherwise unable to get a job.
The types of work vary but it is mostly concentrated on manufacturing. 
As of this year,
some 520 facilities have been established across the country, with about
140,000 people having been hired. 
The sheltered
employment facilities are only designated under certain conditions. More than
80 percent of the employees must be the severely disabled with their disability
degree at over level 3. Job training programs must also be offered.
“This scheme
does help the disabled get job opportunities, especially for those whose labor
productivity cannot compete with the nondisabled in the general labor market,”
said Kang Dong-ug, the social welfare professor at Korea National University of
Welfare.
While the sheltered
employment facilities provide rare job opportunities for the disabled, the work
condition remains neglected, with the majority of them failing to guarantee
their workers with the minimum wage.
Under the Minimum
Wage Act, all employees are ensured with at least the minimum wage in return
for providing their labor. 
The government,
however, has allowed an exception for those with “very limited working
capacities due to mental or physical handicaps,” citing lower labor
productivity.
As of last year,
about 5,600 disabled employees at 482 workplaces were legally ruled out from
getting the minimum wage, the authorities said. Of these workplaces, nearly 70
percent were those designated as sheltered employment facilities, mostly run by
welfare institutions or social corporations. 
Employers can pay
lower wages after getting the waiver approval from the ministry. The
government determines whether to allow the minimum wage waiver based on
evaluations of the labor capacity of the disabled employees. 
According to
government data, the average hourly wage of disabled people was 57.1 percent of
nondisabled wages, at 2,270 won. 
“(The government)
has viewed the minimum wage system from a market economy perspective and
measured the labor productivity based on how much the workers can contribute to
production,” a ministry official said. 
While disabled
employees are getting paid less than the minimum, employers benefit from public
subsidies in return for hiring disabled people. A monthly subsidy of
about 500,000 won is provided for each disabled worker hired, depending on
gender and disability level, officials said. 
“The minimum wage
waiver is being abused by more and more employers who want to save the labor
cost and yet seek state subsidies,” said Lee Moon-hi, the deputy secretary
general of civic group Korea Differently Abled Federation. KODAF is an
association of all disabled rights groups in Korea.
In 2013, about
4,500 workplaces applied for the waiver, doubling in three years, officials
added.
“Realistically, the
disabled show lower work capacity but it is overlooked that their ability can
be same as others depending on the type of work. Just having a physical or
mental disabilities does not necessarily mean that their work capacity is
(naturally) lower,” Lee added. 
Among the OECD members,
Korea is one of the three countries that do not guarantee the minimum wage for
the disabled, along with New Zealand and some regions in Canada.
Last year, the
United Nations Convention on the Rights of Persons with Disabilities
recommended that the Korean government take appropriate measures to protect the
disabled so that equal pay can be earned for equal types of work.
Doubts over efficacy 
As public criticism
grew over the waiver rule, the ministry vowed earlier this year to repeal it.
Instead, the government said it would adopt a wage cut system which reduces the
pay depending on the level of labor capacity.
The authorities
would allow companies to cut the wage of the disabled depending on the level of
their labor capacity. Those graded with over 90 percent will be guaranteed the
full minimum pay while those under 90 percent will get pay reductions in steps.
Those with under 70 percent will receive the set wage established by the
government. The new scheme is to go into effect starting in 2017 with a
concrete plan under discussion, officials added. 
Experts, however,
are skeptical of the new measure. 
“I don’t see the
difference in the new policy. The existing minimum wage waiver is already about
cutting the wage,” professor Kang said. “Except how the ministry has set the
lower limit of the wage, everything is same. There are still many loopholes
that can be abused.”
Civic groups urged
that the ministry should consider introducing a wage guarantee system in which
the gap between the actual low pay and the legal minimum wage is supplemented
by a public fund gathered for the disabled. 
“A study has shown
that this system would only need an extra cost of 8.9 billion won a year. This
amount is manageable by public funding,” said Lee from KODAF. 
The UN Convention
also advised the Korean government to adopt the wage guarantee system to secure
the living conditions of people with disabilities. 
“The minimum wage
problem is not just a labor issue anymore. It should be dealt from the
welfare’s viewpoint. The minimum wage is now considered essential for
protecting one’s individual’s human rights,” Kang said. 
Experts underscored
that the labor policy should be considered in conjunction with welfare measures.
“There is no such
thing as a right answer for the disabled people’s wage system. The key question
is whether the current system, including the labor measures and welfare
benefits, secures disabled people’s human rights and dignity,” Na said. 
 
Article Source: http://ann-srv.asianewsnet.net/Koreas-labour-market-shuns-disabled-74212.html
Image Source: http://www.disabilityrightslegalcenter.org/sites/www.disabilityrightslegalcenter.org/files/styles/slideshow_image/public/iStock_000020197341_Small_0.jpg
 
VOCABULARY WORDS:
1. Reluctant
(adj.) ~ unwilling 
2. Mandate (n.)
~ an official command  
3. Conglomerate
(n.) ~ a corporation made up of a number of different companies 
4. Scheme
(n.) ~ a systematic plan of action 
5. Waiver
(n.) ~ intentional relinquishment of a right, claim, or privilege  
6. Subsidy
(n.) ~ monetary assistance granted to a person or group 
7. Efficacy (n.) ~ capacity to
produce a desired effect or result 
8. Skeptical
(n.) ~ given to doubt  
 
QUESTIONS FOR
DISCUSSION:
1. Are there people with disability in your
company? What kinds of tasks are given to them?  
2. Do you agree that disability could
directly affect the productivity of a person? Discuss your answer. 
3. Since most of the companies that don’t
follow the government mandate are big conglomerates and they are able to afford
the fine, what kind of punishment do you think would be more effective for the
mandate to be more successful? 
4. Do you believe that people with
disability should be given equal opportunity and wage? Why?