SUBSTITUTE HOLIDAYS

[Anchor Lead]

The National Assembly standing committee has passed the bill on substitute holidays. The new law does not apply to a large number of small firms.

[Pkg]

The bill on substitute holidays proposed by the Democratic Party has been passed by the Public Administration and Security Committee. Under the proposed law, there will be four additional days off this year to make up for four public holidays that fall on the weekend. This includes Independence Day, National Foundation Day, Hangeul Day and Christmas. But the law does not apply to some 2.4 million workers in the country. Firms with fewer than five employees are not subject to the change. Some 6.6 million workers at firms with more than five but fewer than 30 employees will not benefit from substitute holidays until next year. Paid leaves on substitute holidays are provided in line with the Labor Standards Act. At companies with fewer than 30 employees, paid leaves will be guaranteed beginning next year. The issue of polarization loomed large on the agenda of the National Assembly standing committee.

[Soundbite] Rep. Lee Hyung-seok(Democratic Party) : "Let's discuss the problems after amending the Labor Standards Act, and instead give the tired workers more opportunities to rest."

[Soundbite] Rep. Lee Young(People Power Party) : "We will soon have to apologize to workers at firms with fewer than five employees for ostracizing them."

Lawmakers from the People Power Party boycotted the vote·The bill was processed only by the ruling party. The Democratic Party said it was the opposition party that objected to applying the law to firms with fewer than five workers. The PPP rebutted by accusing the ruling camp of hastily handling the matter.

[Soundbite] Lee Dong-young(Spokesperson, Justice Party) : "If this runs counter to the Labor Standards Act, the ruling and opposition parties should find an alternative at the Environment and Labor Committee."

Discussions of how to make up for labor cost losses will likely be inevitable even after passing the bill.