Labor groups expected to increase their political activity in 2012
Concerns are rising that industrial relations will worsen in 2012 as labor groups revealed, in their new year’s messages, their plans to strengthen connection with political groups and hold general strikes to force favorable resolution of certain labor issues.
In his new year’s message, the Minister of Employment and Labor, Lee Chae-pil, revealed his plans to ① create jobs through reduction of working hours and ② eliminate discrimination for non-regular workers. As part of his plans to reduce working hours, Mr. Lee has required car makers to hand in plans they have drawn up to reduce their working hours, something which was approved on January 4th for Hyundai and KIA Motors.
For his part, the president of the Federation of Korean Trade Union (FKTU), Lee Yong-deuk, declared his intention to strengthen the alliance with the Democratic United Party (DUP) as a way of addressing the labor issues the FKTU is focusing on. The FKTU actively supported pro-FKTU candidates in the DUP leadership elections on January 15th.
And finally, the president of the Korean Confederation Trade Union (KCTU), Kim Young-hoon, stated his plans to strengthen the political struggle against the government through general strikes and involvement in the upcoming elections. Mr. Kim emphasized the need for a “return of the general strike which devastated the New Korea Party 15 years ago.” The KCTU has already declared industrial conflict from late June to early July, followed by political conflict from late August to early September.
Number of labor disputes in 2011 the lowest since 1996
According to the report, “Analysis and Evaluation of Labor Relations in 2011” by the Ministry of Employment & Labor (MOEL) on January 10th, the total number of labor disputes were 65 in 2011 (86 in 2010) and lost work days were 429,335 (511,307 in 2010). This was the lowest number of strikes since 1987, and the lowest number of lost work days since 1996.
【 Figure 1】 Trend of Labor Disputes and Lost Work Days
(Units: days, No. of disputes)
The time-off and multiple union systems are taking hold in workplaces. Of the 2,999 companies subject to these systems, 2,946 of them (98.2%) have introduced the time-off system, and 2,936 (99.7%) of them complied with the time-off limit.
Since the implementation of the multiple union system on 1st July, 2011, 640 new trade unions have been established. The number of new trade unions established each month has been decreasing since July of last year. And of the 502 companies monitored by MOEL, 467 (93%) have unified bargaining channels.
【 Table 1】 Number of New Trade Unions Established Each Month
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July
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August
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September
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October
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November
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December
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Number of new trade unions established
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322
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108
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68
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54
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49
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39
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Average number of trade unions established per day
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10.4
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3.5
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2.3
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1.7
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1.6
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1.3
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Korean Railway Workers Union demanding plans to privatize KTX be withdrawn
Unstable industrial relations are expected in the public sector as the Korean Railway Workers Union (KRWU) plans action against the government to express their opposition to the privatization of KTX. Through an emergency branch officers’ meeting on January 10th, the KRWU finalized its plans of action against the privatization plans and issued its 1st Guidelines to all affiliated unions.
<Major features of the 1st Guidelines to Opposing Privatization of KTX>
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∙ Each branch shall hold an emergency assembly by January 20th.
∙ Each branch shall collect the signatures of all trade union members.
∙ All trade union members shall actively participate in conveying to the public the plans to privatize KTX.
∙ All trade union members shall participate in the convention on opposing privatization of KTX (scheduled for February 4th)
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The KRWU is planning to raise awareness of the plans for privatization of KTX through the media, and hold a convention on it together with the Korean Public & Social Services and Transportation Workers’ Unions (affiliated with the KCTU), and the Korean Railway Industry Trade Union (affiliated with the FKTU). The KRWU is also expected to seek political help in reversing the government’s plan to privatize KTX.
On January 11th, the Democratic United Party (DUP) created a working group to block privatization of KTX and requested that the government to withdraw their plans. Further, the DUP is also planning to revise the legal framework around the rail system in the future.
KFIU branches entering final stages of 2011 collective bargaining
Thirty of the 35 branches of the Korean Financial Industry Union (KFIU) have concluded collective bargaining agreements for 2011, including Woori Bank, Korea Exchange Bank and Standard Chartered Bank. As most of these branches have entered the final stages of collective bargaining for 2011, the KFIU is beginning to focus on their plans for business this year, which include strengthening themselves for political conflict leading up to the general elections and industry-level bargaining in 2012.
Unstable industrial relations continue in workplaces affiliated with the KCTU
The trade union at Poongsan Corporation (PSMC), which is affiliated with the Korean Metal Workers’ Union (KMWU) is continuing a strike which has been ongoing since November 3rd last year, demanding the company withdraw its plans for massive layoffs. It also plans to raise awareness through this illegal strike, hoping to get civil and political groups involved.
The trade union at Sejong Hotel, affiliated with the Korean Federation of Private Service Workers’ Unions, has also been on strike since January 2nd, demanding an 8.7% increase in fixed wages, an “incentive” allowance of ₩500,000 and a service allowance of ₩110,000. Sejong Hotel has multiple trade unions, including the Sejong Hotel Labor Union (69 union members, affiliated with the KCTU), and the Sejong Trade Union (134 union members, unaffiliated with any umbrella unions).