Labor Trends

1. Trade unions seeking independent research on time-off for union activity towards revision of the time-off system

Two umbrella unions (FKTU, KCTU) are seeking ways to revise the time-off system and set a higher maximum for time-off for union activity. On February 12, the FKTU and KCTU decided to conduct independent research on time-off with the aim of refuting research findings from the Time-off Deliberation Committee. For its part, the Time-off Deliberation Committee plans to conduct research on the use of the time-off system in workplaces during the first half of 2013. Based on this research, the government plans to establish a new maximum for time-off through discussions in the Time-off Deliberation Committee. Current time-off limits were set on May 1, 2010, with a new limit to be decided every 3 years.

Through their planned independent research, the two major umbrella unions aim to show that union activity decreased after implementation of the time-off system and publicize the necessity of increasing the time-off limit. The FKTU is also seeking to use the findings as an additional tool during discussions on a new time-off limit in the Time-off Deliberation Committee. Meanwhile, the KCTU plans to increase labor strife to strengthen its demands for revision of the Trade Union Labor Relations Adjustment Act (TULRAA) with anticipation that the KCTU may not be able to participate in the Time-off Deliberation Committee due to opposition from a number of affiliated unions.

2. FKTU to focus on resolving internal conflict over its political strategies

President Moon Jin-kook of the FKTU seems to seek ways to improve relations with the government and the ruling Saenuri Party by withdrawing FKTU support for the Democratic United Party (DUP). At a breakfast meeting with the Presidential Transition Team (Employment & Welfare Division), the FKTU demanded resolution of the issues regarding the FKTU and expressed concerns over reformation of the Tripartite Commission. However, internal conflicts between the FKTU and its affiliated unions are expected to recur.

The FKTU had conflicts with the FKTU and the Korean Automobile & Transport Workers’ Federation (KATWF) surrounding the ‘Taxi Bill’ (a bill to include taxis as a type of government-supported public transportation), and with the Korean Financial Industry Union (KFIU) regarding support for dispatched full-time union officials.

3. KCTU to strengthen labor strife ahead of the launch of the new administration

The KCTU is carrying out sit-in demonstrations on high steel towers as support for labor disputes in individual workplaces while organizing a joint demonstration with civic groups. The KCTU also continues to raise issues with E-Mart surrounding measures against multiple trade unions.

<Table 1> Sit-in Demonstrations on Towers by Trade Unions

The KCTU is staging an outdoor strike with civic groups and plans to engage labor strife against the government regarding issues of minimum wage, non-regular workers, and in-house subcontract workers.

<Table 2> Major KCTU Activities for 2013

However, the KCTU is expected to face difficulties in carrying out these activities due to internal conflicts surrounding the election of a new president (scheduled on March 21) and negative views on political strife by its major affiliated unions. The issues surrounding its upcoming election for president involve its decision to choose new leadership through an indirect election system at the Regular Convention on January 24, and to postpone implementation of a direct election system for 2 years. The leftist faction within the KCTU voiced the strong opposition to this decision, engaging anti-KCTU activities.

Meanwhile, KCTU-affiliated trade unions from large companies are responding negatively to industry-level strikes. And finally, large company unions are prioritizing settlements of their workplace issues regarding stable employment, work hour reduction and the work shift system.

4. Labor conflicts expected to increase in metal, health and cargo industries

The Korean Metal Workers’ Union (KMWU) is putting efforts to strengthen industry-level bargaining. With this in mind, the KMWU began establishing negotiating channels by industry, including business associations in the automotive and shipbuilding industries, and has made efforts to expand the scope of industry-level bargaining agreements to include in-house subcontract workers. The KMWU is planning a series of strikes from late June to early July demanding implementation of a monthly pay system, extension of retirement age and reduction of working hours. Meanwhile the KMWU aims to conclude collective bargaining before the summer holidays because of the union’s election is scheduled in September. The KMWU has no plans for joint labor strife with finished automobile union, as there are no common goals shared between the groups.

The Korean Health & Medical Workers’ Union (KHMU) is seeking an opportunity to resume collective bargaining at industry level by setting up collective bargaining sessions with private university hospitals. In particular, the KHMU plans to induce participation of private hospitals by compromising on issues of ‘ordinary wage’. However, many private hospitals are not in favor of resuming collective bargaining.

The new leadership of the Korean Cargo Workers’ Union (KCWU) is planning to hold a strike demanding introduction of a standard freight charge system. The KCWU held illegal strikes in the beginning days of new governments in the past (August 2003 and June 2008), demanding increases in freight transportation fees.

The Korean Financial Industry Union (KFIU) plans to focus on improvement of working conditions and employment stability through government policy to extend the retirement age and strengthen protection of non-regular workers.

<Table 3> Major KFIU Demands for 2013