Delay implementation of the safety act

The National Assembly must pay heed to the pleas of small companies and merchants.

The Serious Accident Punishment Act would affect smaller business establishments employing five to 49 from Jan. 27. The law promulgated by the previous Moon Jae-in government in January 2021 gave a three-year grace period for smaller companies hiring fewer than 50 employees. That grace period is coming to an end. But 830,000 companies falling under legal scrutiny are pleading for a delay in the implementation of the rigid act. To comply with the complex law that requires expertise, they must also hire safety experts. But many owners of small companies cannot afford the extra cost.

According to a survey of 1,053 companies with employees fewer than 50 last November by the Korea Enterprises Federation, 94 percent responded that they were not ready for the law. One out of two is yet to hire a safety supervisor.

The law does not just affect constructors and manufacturers but also bakeries, restaurants and fried chicken shops that employ more than 5 employees. When a fatal accident occurs at a mom-and-pop diner, the owner would have to serve a minimum of one year in prison or pay a fine of up to 1 billion won ($743,494). Many business owners are unaware of the change. Various confusion and side effects can occur if the act expands from Jan. 27 as planned.

The government and the People Power Party (PPP) last month proposed to put off the implementation of the act on smaller companies until 2026, but their attempt was stopped by the majority Democratic Party (DP). President Yoon Suk Yeol, during a cabinet meeting on Tuesday, said that punishment may not be the sole answer. “Given the situation of small companies, they may need more time.” If small companies struggle under high interest rates and prices are added with additional burdens, they may not be able to survive. Their fall could translate into layoffs and greater pains for the people, he added.

The DP, which stands for laborers, is reluctant to change the plan ahead of the April 10 parliamentary elections. DP floor leader Hong Ik-pyo said that the majority party would consider suspending the implementation of the law if the government comes up with a specific outline to establish an independent agency in charge of industrial safety and health.

But it is outrageous for the DP to demand that the government and the PPP create a new agency when the grace period ends this month. The legislature must first suspend the effectiveness of the law and then discuss the complementary measures. The PPP should also be more proactive in persuading the opposition. A law with a benign design can also turn into a wicked one if it disregards reality. The National Assembly must pay heed to the pleas of small companies and merchants.