A Korean labor-management-government delegation led by the Economic, Social and Labor Council (ESLC) visited Germany to explore models of social dialogue and labor-management cooperation for responding to industrial transformation driven by artificial intelligence and other technological advances. From June 11 to 12, ESLC Chairman Kim Ji-hyung and the delegation* visited the German Federal Ministry of Labour and Social Affairs (BMAS), the German Trade Union Confederation (DGB), and the headquarters of Volkswagen, where they received in-depth briefings on Germany's responses to industrial transformation, including its ‘Industry 4.0’ and ‘Labour 4.0’ initiatives.
*Labor-management-government delegation: President of the Federation of Korean Trade Unions (FKTU), Chairman of the Korea Enterprises Federation (KEF), Minister of Employment and Labor, and members of the National Assembly's Environment and Labor Committee.
The delegation's visit to Germany was particularly meaningful in that it provided an opportunity to directly examine Germany’s experience with social dialogue surrounding ‘Industry 4.0’ and ‘Labour 4.0’, while exploring future-oriented models of labor-management-government cooperation for Korea as it faces the same era of industrial transformation.
In particular, the joint overseas inspection by repre-sentatives of labor, management, and government organized by the ESLC attracted considerable attention, as it marked the first such visit in 18 years since the trip to Ireland during the 2008 global financial crisis to seek a grand social compromise among labor, management, and government.
Upon arriving in Germany, the delegation first visited the German Federal Ministry of Labour and Social Affairs (BMAS) to learn about the impact of industrial and technological changes on the labor market, the German government's policy response, and its experience in building consensus through social dialogue.
Welcoming the delegation, Parliamentary State Secretary Kerstin Griese at BMAS, explained, “Germany's ‘Industry 4.0’ initiative was launched to strengthen the competitiveness of the manufacturing sector and promote digital innovation, while ‘Labour 4.0’ has advanced social discussions focused on protecting workers' rights, vocational training, lifelong learning, and strengthening labor market safety nets throughout the process of technological innovation.”
In particular, Parliamentary State Secretary Griese stated, “The ‘Labour 4.0’ initiative brought together not only labor, management, and government, but also civil society to build social consensus, and the outcomes of those discussions were translated into and reflected in policy measures.” She added, “One of its greatest achievements was that a wide range of labor issues arising from the digital transformation were discussed within the framework of social dialogue.”
She continued, “Germany is now preparing proactive responses to challenges of the labor market in the era of AI transformation,” adding, “With projections indicating that every job will be affected by AI by 2030, the government is promoting consulting programs, particularly for small and medium-sized enterprises that lack the capacity to respond effectively.”
Finally, Parliamentary State Secretary Griese empha-sized, “It is important to raise questions, involve a broad range of stakeholders, and strive for deliberative democracy. Citizen participation is essential to achieve this.”
Chairman Kim Ji-hyung stated, “Industrial transformation presents both significant challenges and new opportunities for businesses and workers alike. Germany's experience demonstrates that technological innovation, industrial competitiveness, and worker protection are not conflicting objectives, but goals that can be achieved together through social dialogue.”
President Kim Dong-myeong of the Federation of Korean Trade Unions (FKTU), remarked, “Realizing a ‘just transition’ in the face of the climate crisis and industrial restructuring — one in which no one is left behind — is a shared mission of the trade union movements in both countries. I hope that we can combine our wisdom and build a strong cross-border solidarity to achieve this goal.”
He further stated, “In times of crisis and transformation, there are clear limits to approaches that focus solely on individual interests while attacking one another. Instead, we must pursue a partnership based on cooperation and shared prosperity to ensure sustainable development for all. The FKTU, too, will move beyond its past emphasis on confrontation and actively engage in social dialogue, working together with labor, management, and government to overcome today's challenges and design a better future.”
Chairman Sohn Kyung-shik of the Korea Enterprises Federation (KEF), stated, “This visit reaffirmed how important mutual trust and dialogue among labor, management, and government are during the process of industrial transformation. As Korea is also experiencing changes driven by global competition and artificial intelligence, we must seek win-win solutions that benefit both labor and management.”
Minister Kim Young-hoon of the Ministry of Employ-ment and Labor, emphasized, “Germany's experience in safeguarding both industrial competitiveness and quality jobs through social dialogue offers valuable lessons for Korea.” He continued, “Korea is likewise engaged in discussions on the adoption of AI, innovation in production methods, and the sharing of benefits. The government will actively support social dialogue so that industrial transformation can become a new opportunity for both businesses and workers.”
The delegation then visited the headquarters of Volkswagen, which has been facing challenges resulting from changes in the Chinese market, to examine its workplace-level social dialogue framework and labor-management relations mechanism. They also learned about worker participation through the Works Council and various examples of labor-management cooperation.
In particular, the delegation exchanged views on labor-management cooperation aimed at simultaneously addressing corporate challenges, maintaining competi-tiveness, and ensuring employment stability during the transition to electric vehicles and digitalization. Discussions also covered job redesign, reskilling systems for workforce, and mechanisms for worker representatives to participate in corporate management.
In addition, the delegation visited the German Trade Union Confederation (DGB) and the Confederation of German Employers' Associations (BDA), where they were briefed on recent priorities and response strategies of both labor and business regarding industrial transformation, climate neutrality, and the adoption of artificial intelligence (AI). They also discussed the importance of labor participation and social dialogue throughout the process of industrial transformation.
