Tripartite committee fails to agree on retirement age

SEOUL, June 7 (Yonhap) -- A tripartite commission of management, labor and government members failed on Tuesday to agree to extend the retirement age to 60, but adopted a resolution to boost employment of the post-war baby boom generation, officials said.
The Economic and Social Development Commission, the presidential advisory body to deal with labor issues, discussed a retirement age extension plan in a regular meeting, but failed to narrow a wide gap between labor and management on the issue, the officials said.
Experts say that some 7.12 million people who were born around 1960 after the 1950-53 Korean War will start to reach retirement age in 2011, which poses a threat to the South Korean economy. The country's average retirement age for corporate workers is 57.16.
Labor representatives said the issue of extending the retirement age is not a matter of expenses and demanded the government to revise related laws to lengthen the age limit by 2013, while management argued that the extension would shoulder additional burdens to companies.
A subcommittee of the tripartite commission had discussed the retirement age extension in March last year, but failed to come to an agreement as management strongly opposed the extension.
Instead, the commission adopted a resolution that the parties will make efforts to create jobs benefiting middle-aged and older people as well as the young generation, and will make gradual extensions to the retirement age for baby boomers, said the officials.
Under the resolution, the three parties will strive to diversify ways to lengthen retirement age by rehiring retired workers or encouraging them to start new businesses, officials said. The parties will also reform a wage system in order to ease the financial burden of companies, the officials added.
brk@yna.co.kr