1. Major industrial unions begin 2014 collective bargaining
Labor and management in both the metal and finance industries held their first central-level collective bargaining sessions, and as labor unions will demand high increases in wage, expansion of the scope of ordinary wage, and changes to the wage system, negotiations seem to be difficult.
Although the KFIU (Korea Finance Industry Unions) under the FKTU (Federation of Korea Trade Unions) and the KMIEA (Korea Metal Industry Employers’ Association) began their first central-level bargaining sessions on 10 April, negotiations are having difficulties due to problems in affiliated bank restructuring.
The KMWU (Korea Metal Workers’ Union) under the KCTU (Korea Confederation of Trade Unions) and the KMIEA held their first industrial bargaining sessions on 8 April. Central-level bargaining will take place every Tuesday and branch level bargaining will take place every Thursday. Difficulties are expected in central-level bargaining this year due to expansion of the scope of ordinary wage, and changes to the wage system. In the metal industry, the KMWU is seeking to reach a settlement before summer vacation as it demands expansion of the scope of ordinary wage. The KMWU is likely to attempt a fierce struggle since its umbrella union, the KCTU, is planning a general strike in late June.
[Table 1] Demands of KMWU · KFIU in Industrial Bargaining
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Wage
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KCTU
KMWU
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∙ Increase basic pay to KRW 159,614 per month (exclude amount of salary promotion)
∙ Increase minimum wage for the metal industry ( KRW 6,700 per hour)
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FKTU
KFIU
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∙ Increase by a total of 6.1%
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|
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Ordinary
Wage
Wage
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KCTU
KMWU
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∙ Include regular bonuses and welfare benefits that are given regularly and uniformly
∙Ban modifications of regular bonuses given in the past to performance-based bonuses
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FKTU
KFIU
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∙ Include regular bonuses, minimum guaranteed performance-based bonus, regular and uniform paid allowances and welfare benefits
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|
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Retirement Age
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KCTU
KMWU
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∙ Companies to set retirement age beyond 60 and put forward the implementation in accordance with labor-management agreement
(Agreed in industrial bargaining in 2013)
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|
FKTU
KFIU
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∙ Extend retirement age to 60, or to the age of eligibility for the National Pension if the wage peak system is implemented
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Difficulties are also expected during the industrial bargaining of Hyundai Motors and Kia Motors.
Hyundai Motors will have wage bargaining this year, while Kia Motors have both wage and collective bargaining. Since it has a plan of its provisional convention on 7 ~ 8 May, Hyundai Motors branch union will likely start branch-level bargaining in the middle of May after deciding on its demands. Kia Motors branch union has confirmed its demands during its provisional convention on 21 April, and will start branch-level bargaining beginning on 26 May.
Converting in-house subcontract employees to regular employment status, expansion of the scope of ordinary wage, and employment security will be major issues in collective bargaining for car makers.
2. Two national union centers strengthening opposition to government plans on privatizing public institutions
A joint committee of the two national union centers for the public sector held a press conference on 17 April at the Government Complex in Gwanghwamun with the aim of opposing the government plans to privatize public institutions. The joint committee has announced its plans to initiate a general struggle in May and a general strike in June with Korail, Korean Electric Power Corporation, LH and 38 other affiliated public company unions which the government has targeted for privatization.
[Table 2] Major Issues of Joint Committee of FKTU·KCTU against Government Privatization
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① Block appointments orders of the government, restructuring, privatization
② Refuse management assessment
③ Refuse retrogressive revision of collective agreement, prepare for general strike
④ Determine which political parties are anti-labor in June 4 local elections,
⑤ Follow guidelines for action from the Joint Committee against Privatization:
May: Joint actions for in local elections, apply for mediation of labor disputes
June: Disrupt labor dispute mediations and secure the right to strike, general strike in late June
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It is expected that instability will increase in industrial relations due to the outdoor struggle of public institution unions affiliated with the KCTU. As of 2013, there are a total of 295 public institutions among which 215 institutions have their unions and among them, about 120 labor unions have joined the KCTU. The KCTU is further planning to stir up industrial relations in the public sector through its ‘April 17 Railroad & Medical Care Protector’ opening ceremony, and its ‘April 19 KCTU Resolution Meeting of Government Judgment & Democratic Restoration’.
The KCTU is also planning to strengthen their actions, assuming that amendment of laws related to pension, healthcare privatization, and reduction of working hours will take place during the April extraordinary session of the National Assembly before the local elections in June.