Labor Trends

1. FKTU seeking to resolve current issues by improving relations with the government

The FKTU (Federation of Korean Trade Unions) seeks ways to improve the relations with the government and resolve current issues including the time-off system by participating labor-management cooperation programs. Mr. Moon Jin-kook (President of the FKTU) plans to ask the government to extend the maximum limit of the time-off system, extend the application of the system to include dispatched union officers and pay wages to dispatched full-time union officers with fund-raising.

Mr. Moon intends to strengthen his influence by successfully increasing the maximum time-off limit while affiliating the KT Networks Trade Union (25,000 members) which decided to join the umbrella union during the regular convention held March 20 ~ 22. If the union members of the KT Corporation and its affiliates are included, it is estimated that the FKTU will gain a total of 50,000 new members.

<Table 1> Membership of Umbrella Unions

2. KCTU to strengthen struggles with election of new leadership

The KCTU (Korean Confederation of Trade Unions) is seeking to strengthen its influence with the election of the leadership on March 20 and lead a series of aggressive labor actions. In particular, the KCTU plans to concentrate its actions during wage and collective bargaining periods and regular sessions of the National Assembly in the second half of the year. Furthermore, the KCTU is seeking to strengthen ties with civic groups on socio-political issues such as the KORUS FTA, Korea-U.S. military exercises, and sit-in demonstrations on high steel towers.

Meanwhile, the KCTU is organizing a joint response team to deal with privatization of public services. In line with this, the Korean Public & Social Service and Transportation Workers’ Union, the Korean Railway Workers’ Union, the Korean Power Plant Industry Union, the Korean Government Employees’ Union, and the Korea Health & Medical Workers’ Union, all KCTU-affiliated trade unions launched the ‘Movement Opposing Privatization’ on March 27. The KCTU is planning to stage a candlelight protest, similar to the one in 2008, to turn public sentiment against privatization, with the participation of such progressive groups as MINBYUN (Lawyers for a Democratic Society), the Progressive Justice Party, the Unified Progressive Party, People’s Solidarity for Participatory Democracy and People’s Power.


3. Conflicts deepen over wage

Labor is expected to demand higher wages this year for reasons of growing household debts and inflation. They are also planning to demand a higher minimum wage as was proposed by President Park Geun-hye during her presidential election campaign. In particular, the KCTU is demanding wage increases for all wage earners including regular, non-regular workers and minimum wage earners to a fixed amount of KRW 219,170 ($196) per month.

The government is in consideration of changing the minimum wage calculation as economic growth rate + inflation + α (income distribution etc.) and preparing Guidelines for Minimum Increase Rate to ensure minimum wage is at a certain level. Labor plans to engage labor actions to push the government to increase minimum wage by a considerable amount. Last year, the FKTU and KCTU did not participate in the minimum wage decision-making process while successfully increased minimum wage by 6.1% (KRW 4,860 ≒ $4.35) for 2013 through labor strife.

Labor is also expected to use struggles to demand fixed bonuses be included in ordinary wage and working hours reduced. The Korean Metal Workers’ Union (KMWU) is demanding the reduction be made without cutting wages (introduction of monthly wage system including overtime pay) for wage and collective bargaining this year.

An increasing number of trade unions are demanding fixed bonuses be included in ordinary wage, with some even filing lawsuits over this issue. Most lawsuits regarding ordinary wage have been filed by regular workers from large companies. Some trade unions claim that employers are pressuring trade unions to drop their lawsuits, which is considered an unfair labor practice according to the unions.


4. Conflicts continue over non-regular and in-house subcontract workers

Labor is demanding the government strengthen their protective policies for non-regular workers and in-house subcontract workers. Labor is expected to demand active labor inspections at major car makers and retail companies, aiming to resolve conflicts surrounding non-regular and in-house subcontract employment. Towards resolution of the issues of in-house subcontract workers at Hyundai Motors and non-regular workers in the public sector, the KCTU plans to highlight the cases at E-mart and GM Korea where illegal dispatch is considered to have occurred.

From March 4 to 8, the Ministry of Employment & Labor (MOEL) conducted an investigation at Hyundai Motors’ Ulsan factory, interviewing 580 in-house subcontract workers. During the investigation, the Non-regular Workers’ Union at Hyundai Motors staged a two-hour strike (March 7) claiming that the company allocated non-regular workers into one group to conceal that the workers had been illegally dispatched.

At industry-level bargaining, the KMWU has demanded that collective bargaining agreements be applied equally to all employees, including in-house subcontract workers. Meanwhile, the Korean Public & Social Service and Transportation Workers’ Union and other non-regular workers’ groups are planning to launch an organization called ‘Solidarity with Non-regular Workers in the Public Sector’ in early April and hold a series of strikes against administrative agencies, educational institutions and local government.


5. Intensifying labor inspections on occupational safety and health

The government plans to conduct special labor inspections on 1,000 workplaces nationwide where fatalities have taken place, while simultaneously conducting labor inspections on workplaces handling toxic chemical substances. In particular, the government plans to supervise both the primary and subcontractor firms in carrying out their safety obligations in accordance with the Occupational Safety & Health Act. Industries at high risk of severe accidents (2 or more fatalities) such as construction, retail import of chemicals, and manufacturing will be targeted.

Meanwhile, labor is planning to demand establishment of the ‘Special Act on Punishment for Fatalities from Industrial Accidents’. Trade unions have also demanded expansion of medical check-ups and their participation in occupational safety and health activities at workplace. The Korean Federation of Construction Industry Trade Unions (affiliated with the KCTU) held a press conference on March 14 demanding punishment of management personnel responsible for industrial accidents, and is planning a series of outdoor strikes in April demanding that the right to indemnity be strengthened for construction and machinery workers.


6. Stronger demands for revision of labor laws and systems

Labor is engaged in labor actions at various companies and plans to push ahead with the revision of labor laws, by strengthening coalitions with politicians. In particular, labor will demand resolution of labor conflicts at the concerned company, a higher minimum wage and guarantee of basic labor rights to all workers at the National Assembly in April.

<Table 2> Major Labor Issues in Selected Companies

Meanwhile, labor is expected to spread labor conflict to other workplaces with no trade unions. The KCTU plans to organize a taskforce and launch a campaign with civic groups to highlight the issues of labor management at workplaces with no trade unions.

The Korean Federation of Private Service Workers’ Unions (affiliated with the KCTU) continues to raise issues of E-Mart over the company measures against formation of multiple trade unions, by holding rallies in front of E-mart over 16 different regions, including Seoul, Incheon, and Suwon.