Labor Trends

Labor disputes and lost work days are increasing. Labor is planning to expand its outdoor rallies after May, when the political ramifications of the Sewol disaster are expected to settle down.

	2014.1.1 ~ 2014.4.30	2013.1.1~2013.4.30
Number of Labor Disputes	20 cases	8 cases
Lost Work Days	30,622	20,850

The summer struggles will start with the KHMU (Korea Health & Medical Workers’ Union) and their pending issue: health care privatization – under the KCTU (Korea Confederation of Trade Unions) and trade unions of subcontracted workers in large enterprises. The FKTU (Federation of Korea Trade Unions) intends to continue its struggle against the government in the second half of the year. The FKTU will attempt to contact political communities through the regular session of the National Assembly in September as well as the Parliamentary Inspection in October, to settle pending issues. The FKTU is expected to demand a resolution of these issues in the public sector and an increase of government subsidies, while it suggests the possibility of the return of the Tripartite Commission in the second half of the year.

Year	2010	2011	2012	2013
Amount	￦2.8 billion ($2.74 million US)	￦1.6 billion ($1.56 million US)	￦1.7 billion ($1.66 million US)	￦2.4 billion ($2.34 million US)

Due to its weakened strength as a result of the low participation of affiliate unions in the general strike, the KCTU is expected to face difficulties in preparing for its ‘Summer Struggle’. In order to gain more influence, the KCTU is discussing measures to affiliate with public sector unions under the umbrella unions by converting the general strikes scheduled in June to a ‘struggle against the National Assembly’ in late August or early September.

Labor strife in the public sector has been increasing since March, with the struggles divided between the FKTU’s negotiations with the government and the KCTU’s field strikes.

The public sector trade unions affiliated with the FKTU and KCTU prosecuted former president Myung-bak Lee on suspicion of ‘dereliction of duty’ on 10 March, and held a general strike on 22 March. The unions are planning to finish the process of “Mediation before Industrial Action (Article 45, Trade Union & Labor Relations Adjustment Act) by the beginning of June in order to secure the right to strike.

The FKTU is aiming to use multilateral bargaining channels with the government and the National Assembly, such as the Strategy & Finance Committee. However, the KCTU intends to use the public sector trade unions’ struggle as the main focus of its strikes. As of March 2014, there are a total of 304 public sector institutions, and 204 of them have trade unions, about 180 of which are affiliated with the KCTU.

The public sector unions affiliated with the umbrella unions are planning to execute their strikes before the regular session of the National Assembly in September, starting with the unions in major public institutions such as Korail, Korea Electric Power Corporation, LH (Korea Land & Housing Corporation), and Korea Expressway Corporation, which are the priority objects for government control. Moreover, the public sector unions will concentrate on their demand to choose witnesses for the 2014 Parliament Inspection as well as other struggles related to wage negotiation.

Labor brought up wage increases, extension of the scope of ordinary wage, and demands for wage systems to remain the same (maintaining the seniority-based wage system) etc., as the main points for collective bargaining this year. Amidst the delay in legislation of ordinary wage-related bills, labor is trying to take advantage of the expansion of the scope of ordinary wage through demands for wage increases and other new allowances prior to the law revisions.

Despite the fact that companies will bear a greater burden from the expanded scope of ordinary wage, labor is demanding high wage increases. Labor is also expected to focus on revision of the clause in the Court’s ruling which states “bonuses and other allowances are not ordinary wage if the bonus and allowance are paid only to incumbent workers,” and the setting of new allowances. At the moment, it is expected that disputes from employment stability, working hour reduction, retirement age extension and the wage-peak system will also increase.