Labor Trends

The FKTU continues to suffer the internal rift caused by conflicts between supporters and opponents of Lee Yong-deuk (FKTU president). Mr. Lee resigned from the supreme council of the Democratic United Party on May 4th to concentrate on his duties as FKTU president for a time being. He is planning to have a meeting with the representatives of individual industry-level unions and ask for their cooperation on the FKTU’s main business, including the extraordinary national congress. However, the possibility of his return to the party after the DUP’s national convention on June 9th cannot be ruled out. The anti-Lee Yong-deuk faction, including the Korean Federation of Transport and Distribution Workers’ Unions, is demanding an official apology from Mr. Lee for the FKTU’s internal split and an end to his political career. If their demands are not accepted, they are going to put financial pressure on Mr.Lee by curtailing their amount of contributions.

Meanwhile, the Korean Confederation of Trade Unions (KCTU) held a central executive committee meeting on May 17th to discuss the withdrawal of its support for the United Progressive Party (UPP) and defection from the UPP. However, due to differences of opinion between factions, it could only approve the conditional withdrawal of its support for the DPP. At present, the KCTU’s position is divided into three opinions : one opposing the withdrawal of support for the DPP (NL-front mainstream faction), one favoring the withdrawal of support for the DPP and calling for the stepping down of proportional representatives selected in the primary (NL-front non-mainstream faction), and one favoring the withdrawal of support for the DPP and calling for the creation of a new workers’ party (PD-front).

The Ministry of Employment and Labor is going to push through an amendment to the Labor Standards Act, which would require holiday work to be included in calculating overtime hours, in the 19th National Assembly. Given this, trade unions are planning to intensify the pressure on business circles by making an issue of working hours. The Korean Financial Industry Union (KFIU) plans to secure new hiring and overtime pay during its 2012 industry-level bargaining by making an issue of long working hours among workers in the financial sector. The Korean Metal Workers’ Union (KMWU) will make an issue of long working hours and night work among workers in the metal sector, thereby clinching a deal to implement the daytime 2-shift work system without any pay cut, working hour increase and change in work intensity during its 2012 industry-level bargaining.

KHMU	▣ Excluding the health sector from the application of the special provision for working hours  ▣ Hiring more workers and improving shift work schedules
KFCITU	▣ Abolishing the blanket wage system  ▣ Implementing the no-work-on-Sunday policy across all construction sites
KFSU	▣ Establishing a special law to protect workers in the distribution industry and living environments surrounding large stores, etc.  – Large stores must be closed on Sundays and public holidays.  – Department stores and supermarkets should choose their business hours from a range of 10:00 ~19:00 on weekdays and 10:00~22:00 on Saturdays.  ▣ Revising the Distribution Industry Development Act  – The head of a city, country or district may issue an order to restrict business hours or designate mandatory days off for the large stores, etc., prescribed by the Presidential Decree.  ※ Restrictions on business hours : 00:00〜08:00  ※ Mandatory days off : 1~2 days per month

The Korean Health and Medical Workers Union (KHMU), the Korean Federation of Construction Industry Trade Unions (KFCITU) and the Korean Federation of Private Service Workers’ Unions (KFSU), all affiliated to the KCTU, also plan to make an issue of working hours in the 19th National Assembly to address their respective pending issues.

Meanwhile, labor-management conflicts are expected to grow during this year’s wage and collective bargaining due to controversy on the expanded scope of ordinary wages as well as working hour reduction. During this year’s wage and collective bargaining, trade unions will demand reform of wage systems and additional wages that they think should be paid as a result of adjusting the scope of ordinary wages. If the companies do not accept these demands, they are expected to file lawsuits over ordinary wages.

FKTU	▣ Guidelines on ordinary wages will be distributed across affiliates.  – The scope of ordinary wages will be adjusted, and payment of various statutory allowances will be demanded according to legal principles applicable to adjusted ordinary wages.  –  If companies refuse to pay such allowances, the trade unions will initiate litigation proceedings after getting advice from the Central Legal Center of the FKTU.
KCTU	▣ The KFCITU, an affiliate of the KCTU, considers going on a strike over ordinary wages, reasoning that a strike over ordinary wages will have great appeal to its members since nurses’ wages are characterized by low regular pay and high bonuses.
KMWU	▣ Education about ordinary wages and retirement pensions provided in each region from April 23rd(Mon.) until early May.

Labor and management in the metal industry conducted their third round of industry-level bargaining on May 8th 2012, and the labor and management of Hyundai Motor started wage bargaining on May 10th. The daytime 2-shift work schedule and non-regular employment are expected to become main contentious issues during Hyundai Motor’s bargaining.

At its central executive committee meeting held on May 8th, the KMWU changed the planned strike date from July 4th to July 13th to induce Hyundai Motor’s and Kia Motors’ unions to participate in its general strike. In particular, if the Hyundai and Kia Motor chapters take joint strike action or the Hyundai Motor chapter stages a solidarity strike along with the non-regular workers’ branch of the KMWU, labor relations at finished-car manufacturers are feared to become extremely unstable. The joint strike between the Hyundai and Kia Motor chapters would be affected by such factors as the pragmatic tendency among Hyundai Motor union members and differences of opinion between factions of the Hyundai Motor chapter on the joint strike. On the other hand, whether the Hyundai Motor chapter and irregular workers’ branch of the KMWU can coordinate their different opinions seems to act as a major variable in their solidarity strike. Hyundai Motor and the Hyundai Motor chapter and irregular workers’ branch of the KMWU planned to begin their special consultation on May 17th, but the plan fell through as dismissed workers prohibited from entering the factory premises attempted to get into them.

Meanwhile, as the labor and management of Kia Motors delay the start of this year’s wage and collective bargaining, the conclusion of bargaining between the labor and management of Hyundai Motor and Kia Motors seems likely to be delayed, too. This increases the possibility that Hyundai and Kia Motor chapters will participate in the KCTU’s political strike scheduled for August.

The KMWU attempted to create a militant atmosphere ahead of its summer struggle by holding a nationwide memorial service for victims of Ssangyong Motor’s layoffs at Seoul Square on May 19th. The KFIU also held the financial workers’ convention at Seoul Square on May 15th, demanding to halt the privatization of Woori Bank and increase government funds for NH Bank.

The National Union of Media Workers held an outdoor rally, demanding that the Saenuri Party step in to settle labor disputes at broadcasting companies, such as MBC, KBS and YTN. In particular, it is concerned that labor relations in the media sector will continue to remain unstable due to the persistent joint strike among workers at MBC, KBS and YTN headquarters.

Labor and management in the financial industry held their fourth round of industry-level bargaining on May 24th after the third round of industry-level bargaining held on May 8th, 2012. The KFIU held the financial workers’ all-out rally on May 15th and conducted bargaining with employers’ representatives on May 21st. It will keep pressure on the employers’ association, aiming to conclude its industry-level bargaining by the end of August.

Meanwhile, the KHMU determined its industry-level bargaining demands for 2012 at the special convention held on May 9th. However, it would be difficult to get the bargaining process moving ahead due to differences of opinion between labor and management on the way it is conducted. Hospitals are insisting on diagonal bargaining (private university hospitals) and individual bargaining with hospitals of similar character (local medical centers, etc.) while the KHMU is insisting on central industry-level bargaining. As the KHMU plans to pursue industry-level bargaining by targeting its struggle efforts on individual workplaces in question, it is concerned that labor relations in this sector will continue to remain unstable.