Labor groups reviewing strategies after the April 11 general elections
After failing to win a majority of seats in the April 11 general elections, the Federation of Korean Trade Unions (FKTU) is expected to concentrate on resolving their internal conflicts and revising their political strategy for the presidential election in December of this year. The FKTU gained 5 seats via the Democratic United Party (DUP) but since the opposition parties failed to win a majority of seats, the FKTU regards this general election as a failure.
This election failure and the internal conflict are expected to be a setback to the FKTU’s planned activities. The anti-Lee Yong-deuk (President of FKTU) faction within the FKTU plans to continue putting pressure on Mr. Lee, holding him responsible for the disappointing results of the general elections.
Meanwhile, the Unified Progressive Party (UPP) won 13 seats in the general elections but the Korean Confederation of Trade Unions (KCTU) is concerned that their influence is weakening in the party. Although three former KCTU officials won seats with the UPP, their connections with the KCTU are reported to be weak.
The KCTU is planning to maintain their ‘1-10-100’ legislative strategy, but difficulties are expected due to the unfavorable results of the general elections. The ‘1-10-100’ legislative strategy aims to make 10 laws within 100 days all at one time. Labor conflicts are expected to worsen at workplaces as the KCTU seeks a breakthrough in unfavorable circumstances. Also, conflicts surrounding the allocation of members to the Standing Committee of the National Assembly are expected, as a considerable number of UPP elects wish not to be part of the Environment and Labor Committee.
The Ministry of Employment & Labor (MOEL) expects the results of the general elections will weaken labor’s capacity for political strife surrounding the time-off and multiple unions systems. However, if the FKTU proposes discussion at the Time-off Deliberation Committee, those discussions are expected to get support from politicians. The MOEL also hopes that the results of the general election have created a favorable environment for legislation on working hour reduction. But, considering there isn’t much time left in the present 18th National Assembly before the new National Assembly session begins and the preparations are needed for working hour reduction legislation, such legislation is not likely to pass anytime soon. Therefore the MOEL plans to proceed with both the legislation process and discussions at the Economic and Social Development Commission at the same time.
KCTU increasing activities against the government after the April 11 general election
Unstable industrial relations can be expected as the KCTU plans to push their agenda through political conflict after failing to win a majority of seats. Prior to the political conflict in August, the KCTU is planning to lead a one-day strike in late June with such affiliated organization as the Korean Metal Workers’ Union (KMWU), the Korean Railway Workers Union (KRWU), the Korean Cargo Workers Union (KCWU) and the National Union of Media Workers (NUMW).
Industry-level unions continue to negotiate and prepare for collective bargaining 2012
The financial sector held its 2nd Collective Bargaining Meeting on April 17 and agreed to negotiate on wages after negotiation on other items for 2012. Major issues for the next Collective Bargaining Meeting include prohibiting overtime (recruiting more workers instead), adjusting working hours, and extending the retirement age. The employers association in the finance industry is planning to announce its proposal at the 3rd Collective Bargaining Meeting on May 8th.
As for the metal industry sector, the 2nd Collective Bargaining Meeting was held on April 24. Trade unions demanded that a daytime two-shift system be introduced, regular job status given to all non-regular workers, and a minimum wage applied across the metal industry.
Meanwhile the Korean Health and Medical Workers’ Union (KHMW) has decided to set restoration of industry-level bargaining as a major goal for 2012. Other areas of focus, as decided at a high-level officials’ meeting on April 13, include blocking any increase in the number of profit-making hospitals and legislation of the Special Law on the Health and Medical Workforce (draft). Towards the restoration of industry-level bargaining, the KHMW is planning to hold a nationwide tour with its president and finalize industry-level demands at a special convention on May 9.
< Table 1 > Major trade union demands in financial sector
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Wages
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Regular workers: 7%+ (Non-regular workers: increase twice as much as regular workers)
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Management participation
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Allow trade unions to participate in nomination of executive board members
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Non-regular work
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Grant all workers regular job status in phases by 31st December 2015
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Performance-based wage system
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Ban introduction of performance-based wage system
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Extending retirement age, Wage Peak System
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Extend retirement age to 60 (Currently 58)
If wage peak system is to be introduced, retirement age should be extended by linking with the age of National Pension recipients.
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Work hour reductions
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Shift business hours
(From 9:00~16:00 to 9:30~16:30)
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Others
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Exclude government-run banks from application to the budgetary guidelines from the Ministry of Strategy and Finance.
Wages for union officials granted time off to be decided voluntarily by labor and management.
Increase creation of jobs and Corporate Social Responsibility activities.
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Industrial relations in the media and railway sectors continue to be unstable
Labor unions of three major broadcasting corporations (MBC, KBS and YTN) are seeking reasons to end their strike, and are expected to seek resolution of their grievances through politicians. The National Union of Media Workers (NUMW) and broadcasting company labor unions held a meeting with the acting chairman of the DUP, Moon Sung-keun, to discuss ways to restore fairness to broadcasting and deliver a letter to the chairwoman of the Saenuri Party’s Emergency Committee, Park Geun-hye, requesting her to resolve their issues.
Meanwhile, from April 18 to 20, union members of the Korean Railway Workers Union (KRWU) voted on whether to hold a strike against privatization of KTX and held a rally on April 21. The KRWU is expected to seek a coalition with politicians to block privatization of the KTX, recognizing that politicians are not active on this issue at this time. The KRWU is likely to go on strike if the government decides to push ahead with the privatization.