Conflict Continues over Minimum Wage
Korea’s two largest labor groups are boycotting the decision-making process of the Minimum Wage Council. The Federation of Korean Trade Unions (FKTU) and the Korean Confederation of Trade Unions (KCTU) filed joint complaint with the International Labor Organization (ILO) on 4 June, claiming that the Korean government’s appointment of neutral members without consulting labor is a violation of one of the ILO conventions.
These two labor groups plan to change their tack on minimum wage policies from demanding the minimum wage increase to reforming the wage system itself. In the second half of this year, through an alliance with the main opposition party, they are expected to work to revise the Minimum Wage Act in order to increase the minimum wage in line with the rate of consumer price increases.
Serious Internal Strife within the FKTU
Lee Yong-deuk, President of the FKTU is at odds with the Confederation of Korean Transportation and Logistics Unions (CKTLU). At a meeting on 13 June, the CKTLU decided to push the FKTU President Lee to resign in solidarity with the Federation of Korean Textile and Distribution Workers’ Unions, the National Medical Industry Workers’ Federation of Korea and the Ulsan & Deajeon Regional Federation, which are known opponents of the current FKTU president.
Lee Yong-deuk also has tense relations with other executive members of the FKTU and some of his allies, including the Federation of Korean Metal Workers’ Trade Unions (FKMTU) and the Federation of Korean Chemical Workers’ Unions (FKCU) over which candidates they would support in the June 9 elections for leadership of the main opposition Democratic United Party (DUP). While Lee Yong-deuk supported Kim Han-gil, the FKMTU and FKCU expressed their support for another candidate, Lee Hae-chan. As Lee Hae-chan became the winner, Lee Yong-deuk’s influence is expected to weaken within the DUP.
KCTU loses Momentum in the General Strike in June
An all-out strike on June 28 of the Korean Confederation of Trade Unions (KCTU) will likely be weaker than expected due to its internal conflicts regarding the United Progressive Party (UPP) and the weakening alliance with the Korea Cargo Transport Workers Federation (KCTWF) and the Korean Federation of Construction Trade Unions (KFCTU).
As the government has announced its decision to deal sternly with strikes, the KCTWF has found it difficult to increase the intensity of the strike. The KFCTU has lashed out at the KCTWF for its indecisiveness and considered acting alone. The KCTU conditionally withdrew their support from the UPP and has sought to establish a new political force again. However, it is not easy to narrow down the gaps among different groups.
In addition to this, the KCTU’s financial situation is deteriorating due to unpaid membership dues and strike funds owed by its affiliated industrial unions, and therefore, the KCTU is having trouble gathering the strength for the summer struggle. Payment of union dues stood at 52% and strike funds at 39% as of May.
Deadlocked Industry-level Bargaining in 2012
The FKTU-affiliated Korean Financial Industry Union (KFIU) has had 5 rounds of negotiations with 35 banks since April 3. At the 5th round of talks held on June 8th, the KFIU stated that the negotiations failed, demanding amendment to the financial industry proposals. The KFIU requested mediation on 14 and took a vote on 26 on whether to go on a strike. According to the results of the vote, the KFIU plans to conclude the bargaining by August and then concentrate its efforts on political strife leading up to the presidential election.
[Table 1] Comparison of KFIU and Employers’ Position
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Union proposals
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Employers’ position
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Wage Increase
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7.0%+@
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Discuss after concluding collective bargaining
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Retirement Age
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– Extend retirement age from the current 58 to 60
– Introduction of wage-peak system should consider the age of becoming the recipients of national pensions
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Establish a service center in the Korea Federation of Banks to help retirement-age workers in the financial industry to find other jobs
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Business Hours
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09:30~16:30
(Currently 09:00~16:00)
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After a joint labor-management team investigates the actual conditions of working hours, the labor-management committee shall discuss whether or not to adjust business hours
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Non-regular Workers
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Gradually abolish employment of non-regular workers by December 31, 2015
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Discuss this issue in relation to the rate of wage increase
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The KCTU-affiliated Federation of Korean Metalworkers’ Trade Unions (FKMTU) has had 6 rounds of talks since April 17. The FKMTU rejected the amended proposal from the metal industry employers’ association and announced all-out strikes on 13 and 20 July. From 11 to 26 June, the executive members of the FKMTU visited workplaces to persuade workers to join its struggle, resulting in Hyundai Automotive Group affiliates agreeing to participate in the strikes.
[Table 2] Comparison of FKMTU and Employers’ Position
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FKMTU proposals
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Employers’ position
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Minimum Wage
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Hourly wage of US$ 4.8 /
Monthly wage of US$ 1,010
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Hourly wage of US$ 4.07 /
Monthly wage of US$ 924
(Current hourly wage = US$ 4.02 /Current monthly wage = US$ 914)
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Night Work
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Introduce daytime two-shift system within 2012
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Operate a sub-committee to reduce actual working hours along with the joint labor-management committee in the metal industry
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Sub-contracting
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– Introduce a system to determine production cost based on prime costs and consumer prices
– Introduce mediation
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– Abide by the ‘Fair Transactions in Subcontracting Act’
– When determining production costs, consider the prime costs and consumer prices first
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Non-regular Workers
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– Ban on employment of subcontract workers for in-house manufacturing and regular jobs
– Change status of subcontract workers to directly-hired regular workers with open-ended employment contracts
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If non-regular workers are employed beyond 2 years and additional employees are needed, employers try to change the status of non-regular workers to regular workers in accordance with its hiring policies.
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The KCTU-affiliated Korean Health and Medical Workers’ Union (KHMU) requested to resume collective bargaining with hospitals but got refused. As the KHMU’s branches in the hospitals of private universities are not willing to bargain, industry-wide bargaining is not likely to happen anytime soon. In response, the KHMU plans to target two entities reluctant to negotiate: Korea University Medical Center and Ewha Woman’s University Medical Center.
Major Strikes in June
[Table 3] Major strikes held by industrial unions in June
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Korea Cargo Transport Workers Federation
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Korean Federation of Construction Trade Unions
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Warning strike by the KCTU
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Preparatory rally of industrial unions
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Rally of 5 industrial unions
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KCTU rally
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Date
&
Time
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07:00~ June 25
(Mon)
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June 28 (Thurs)
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11:00~17:00
June 28
(Thurs)
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14:00~16:00
June 28
(Thurs)
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17:00
June 28
(Thurs)
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Details
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10:00
General strike started nearby Kyung In IC
→
Strikes targeted at Port of Busan, Incheon, Pyung Taek and Inland Container Depot
(Ui Wang)
General strike started nearby Kyung In IC
→
Strikes targeted at Port of Busan, Incheon, Pyung Taek and Inland Container Depot
(Ui Wang)
|
Participated in KCTU Rally
(Seoul Plaza)
※Approx.
9,000 union members participated
|
11:00
Press conference (In front of National Assembly)
13:30
Korean Health and Medical Workers’ Union (88 Stadium)
14:00
Korean Government Employees’ Union(National Assembly)
Korean Federation of Clerical & Financial Labor Unions (Financial Services Commission)
15:00
Korean Chemical & Textile Workers’ Federation
and Korean Public & Social Services and Transportation Workers’ Union
(Yeouido)
|
14:00
Korea Cargo Transport Workers Federation and Korean Federation of Construction Trade Unions (Seoul Plaza),
Korean Metal Workers’ Union, Korean Teachers and Education Workers’ Union
(National Assembly)
16:00
National Union of Mediaworkers
(Yeouido)
National Union of Mediaworkers
(Yeouido)
Korea Cargo Transport Workers Federation and Korean Federation of Construction Trade Unions (Seoul Plaza),
Korean Metal Workers’ Union, Korean Teachers and Education Workers’ Union
(National Assembly)
16:00
National Union of Mediaworkers
(Yeouido)
National Union of Mediaworkers
(Yeouido)
|
Industrial unions gathered at the National Assembly to hold rally together
※ Approx. 15,000 union members participated
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