Labor Trend

1. FKTU seeking to resolve labor issues through dialogue with new government

The Federation of Korean Trade Unions (FKTU) plans to discuss the labor issues of wage payment for union officials dispatched to umbrella unions and extension of the time-off limit, by participating in the ‘Tripartite Grand Bargaining’ put forward now by the government. Mr. Moon Jin-kook, president of the FKTU, recently decided to run for the presidency of the FKTU next term. He is seeking to use the outcome of the ‘Tripartite Grand Bargaining’ to his advantage in the next FKTU election (scheduled in January 2014). In the meantime, the FKTU is expected to strengthen its relations with political parties to send a number of FKTU personnel to political circles in the upcoming local elections in 2014.


2. Unstable labor relations expected as KCTU increases political strife

In February, the Korean Confederation of Trade Unions (KCTU) plans to demand an investigation of SSangyong Motors while increasing political strife regarding individual workplace issues such as a tower protest of subcontract workers at Hyundai Motors, provisional seizure of workers’ wages at Hanjin Heavy Industry and accusations of unfair labor practices at E-mart. The KCTU is also organizing a second “Hope Bus” with civic organizations such as ‘World without Non-regular Employment’ as its slogan. However, this 2nd Hope Bus is not expected to last for long, unlike the 1st Hope Bus in 2011.

 

<Table 1> KCTU’s major activity plans in February

Date Activity
Early Feb. A nation-wide labor convention
Feb. 6 Rallies demanding resolution of the labor issues including layoffs and suppression of trade unions
Feb. 13 Rallies demanding resolution of the issue of non-regular employment


In particular, the KCTU is expected to focus on the issues related to the special labor inspection of E-mart from January 18 to 25. At a press conference held on January 16, the KCTU and the DUP revealed an E-mart labor management document related to multiple unions and accused E-mart for unfair labor practices. The KCTU and the DUP requested that the government conduct a special labor inspection of E-mart, and on January 22, the Korean Federation of Private Service Workers’ Unions announced that they will organize a joint-response team to address these unfair labor practices.

Meanwhile, the Ministry of Employment & Labor (MOEL) plans to carry out a thorough inspection on the retail giant since a number of MOEL officials are reportedly involved in the E-mart events. This special labor inspection is likely to negatively affect other affiliates under the Shinsegae Group.


3. Industry-level unions to focus on their labor issues rather than political strife

In 2013, the Korean Finance Industry Union (KFIU) is expected to make demands related to wage, retirement age and job security. In particular, the KFIU is planning to demand extension of retirement age from 58 to 60 (60 to 62 if the wage peak system is implemented). Meanwhile, if the new government decides to proceed with an Initial Public Offering (IPO) of Woori Bank and the Korea Development Bank, the respective trade unions plan an industrial action against the government while other financial unions are likely to respond passively.

Major goals for the Korean Metal Workers’ Union (KMWU) for 2013 include a smooth introduction of the daytime two-shift work system and strengthening their position as a Bargaining Representative Union (BRU), issuing to its affiliated unions “2013 Guidelines for Securing Bargaining Rights” as a way to realize the latter.

Meanwhile, the Korean Health & Medical Workers’ Union (KHMU) is seeking an opportunity to resume collective bargaining at the industry level by first setting up collective bargaining sessions with private university hospitals, which it aims to do in the first half of the year. In the second half of the year, the KHMU hopes to have the Act on Support for Health and Medical Workers legislated into law. Labor conflict at private hospitals is expected as the KHMU plans to raise ordinary wage at private university hospitals as an issue to re-start collective bargaining.

The Korean Cargo Workers’ Union (KCWU) is expected to focus on the introduction of a standard freight charge system. Meanwhile, the KCWU has a leadership election from January 19 to 27. If a PD-faction candidate wins the election, the KCWU is likely to engage in activities against the government, which may encourage other labor groups to join.

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