Korea North Procurement News Notice - 12621


Procurement News Notice

PNN 12621
Work Detail Promotion of labor cost burden reduction for SMEs due to minimum wage increase The government will promote the realization of the delivery price of SMEs in order to ease the labor cost burden on SMEs due to the increase in the minimum wage in the public procurement and private subcontracting markets. On April 5, the related ministry confirmed and announced the plan for realizing the delivery price of SMEs (Figure 1). This measure points out that while the labor cost burden of SMEs in the public procurement and private subcontracting markets has increased due to the recent increase in the minimum wage, the minimum wage increase in delivery prices has not been properly reflected due to the practices or institutional limitations. Accordingly, in parallel with financial support such as job stabilization funds, it was promoted to improve unreasonable institutions and practices in the public procurement and civil subcontracting market. The main contents of Implementation plan of delivery price of SMEs to be carried out this time can be divided into public procurement market and private subcontracting market. Public procurement market The government has decided to improve the method of calculating labor costs in the public procurement market. The "Survey of Wages by Small and Medium-Sized Manufacturing Jobs," which is the standard for estimating public procurement labor costs (Table 1), will be expanded twice a year from the current year once. The timing of the wage survey results reflected in the public procurement labor cost was also immediately reflected in the reflection of the current wage survey four months later. Next, the government decided to pre-reflect the wage increase adjustment amount. In the case of low-wage workers such as simple labor services, the minimum wage increase can be immediately reflected. In addition, a basis for adjusting the unit price of MAS supply is provided. In order to alleviate the burden of SMEs due to rapid changes in labor costs, the government has decided to specify a basis rule to adjust the contract amount of multi-supplier contracts. It also decided to reflect efforts to improve conditions for low-wage workers in joint growth evaluations. It is the fact that the contract amount adjustment result due to the wage increase, including the labor price increase and the minimum wage adjustment, is added to the joint assessment of growth of public institutions. Private subcontracting market For the private subcontracting market, we decided to encourage voluntary cooperation, such as the use of the negotiation system for price adjustments. Through the cooperation of major economic organizations and consigned companies council, it will promote member companies need to adjust delivery price for minimum wage increase. It is also recommended to improve and utilize the standard subcontract contract. In the standard subcontracting contract, the contents of the subcontracting payment adjustment according to the supply cost fluctuation such as the minimum wage increase were reflected and the supply and utilization was promoted. In addition, the government decided to expand the scope of the negotiation system for price adjustment. To this end, we plan to revise the Win-Win Cooperation Law so that it can be applied to fluctuations in the supply cost between contractors and contractors. In addition to this, it decided to strengthen the sanction such as the provision of anti-retaliation proposal for the negotiation of the unit price adjustment of delivery. The company plans to revise the win-win cooperation law by adding the content that applies to cases in which the contracting company retaliates because of the request for negotiation of the unit price adjustment for delivery, by expanding the one strike-out system which was applied only to the retaliation act based on the report of the fact- In addition, it decided to strengthen the reflection of the results of the joint growth index in public procurement. We will add delivery price adjustment results as an evaluation factor to implement fair trade agreements, which will lead to more smooth delivery price adjustments in the field. In preliminary screening for participation in public procurement bidding, it was decided to convert the results of performance evaluation of fair trade agreement into a point item from the point of purchase. A government official said, "Through this measure, we will actively promote the system improvement and promotion so that the policy changes such as the minimum wage increase and the wage increase in the private market will be immediately reflected in the delivery price of the small and medium enterprises." He added, "In particular, we plan to actively promote public procurement-related systems and encourage co-operative co-operation among public institutions, so that the public sector can lead the realization of the cost of delivering SMEs."
Country Korea North , Eastern Asia
Industry Services
Entry Date 09 May 2018
Source http://www.hellot.net/new_hellot/magazine/magazine_read.html?code=202&sub=004&idx=40717

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