Labor Trends

① FKTU ; Major issues in the 2nd half of 2012

As its president resigns, the FKTU seems to try to improve relations with the government

With the resignation of Mr. Lee Yong-deuk, President of the Federation of Korean Trade Unions (FKTU), the FKTU is planning to hold a by-election for a new leader. Meanwhile, the Federation of Korean Logistics Workers, which led efforts to push Mr. Lee to resign, is aiming to win the by-election, to lay the groundwork for winning the unions’ next presidential election in January 2014. Although the new FKTU leadership is expected to seek ways to improve the relations with the government, it seems difficult to bring rapid improvement, because the government is raising issues about the umbrella union’s excessive political activities and support for one particular party.

FKTU’s political stance in the presidential election and its financial difficulties would be the main issues

The former president of the FKTU, Mr. Lee Yong-deuk, agreed with his internal opponents that the FKTU should provide support for the Democratic United Party (DUP). Thus, the FKTU is expected to maintain its support for the party for a while. Nevertheless, it is possible that the FKTU may change its position if the new leadership is filled with pro-Saenuri personnel or the approval rate of the opposition candidate for the presidential election falls.

To solve its financial problems which became serious after the introduction of the time-off system, the FKTU is expected to make demands for a revision of the Trade Union Act and for more financial support from the government. The federation is planning to work on the revision during the regular session of the National Assembly in 2012 through an alliance with the Korean Confederation of Trade Unions (KCTU), the DUP, and the United Progressive Party (UPP). The FKTU and KCTU have held five times of working-group meetings on the revision of labor laws with the DUP and the UPP.
However, revision of the Trade Union Act during the regular session of the National Assembly in 2012 would be difficult due to the change of leadership within the FTKU, the weakened influence of the KCTU on workplaces, restrictions on bringing up issues regarding Trade Union Act revision during the election period, and internal conflicts within the UPP.

Considering these negative factors, the FKTU is likely to try to get financial support from the government by developing its ties and applying pressure through the National Assembly members who came from the FKTU.

Meanwhile, the two umbrella unions will not be participating in the “Time-off System Deliberation Committee” for the time being, since they think participation would negatively influence the revision of the Trade Union Act.


 ② KCTU ; Major issues in the 2nd half of 2012

The KCTU will focus on revision of the Trade Union Act through coalition with opposition parties and politicizing labor disputes in the workplace

After its general strike scheduled from August 28th to 31st, the KCTU is expected to focus on activities in the National Assembly, rather than disputes in the workplace. The KCTU is aiming to ① form a subcommittee under the National Assembly to intervene in industrial relations at workplace level, ② expand the definition of ‘employers’ and include ‘self-employed’ in the definition of workers, and ③ revise the Trade Union Act.

In particular, the KCTU seems to try to get the self-employed recognized as workers, considering that the revision of the Trade Union Act in the 2nd half of 2012 would be difficult. For this, the KCTU would work hard to legislate the change of the definitions by determining that the self-employed and subcontract workers are weak and vulnerable members of the society.

The KCTU is looking forward to a free ride with the FKTU if the latter reaches an agreement with the government in terms of issues regarding the time-off and multiple union systems, since the FKTU is willing to work actively on those issues.

In addition, the KCTU is planning to lead lawmakers to intervene in such issues as Ssangyong Motors (dismissals due to business crisis), Samsung Electronics (industrial accidents), and Hyundai Motors (in-house subcontract workers) during the regular sessions (parliamentary inspection) of the National Assembly in 2012.

Also, the breakfast meeting between the umbrella unions and Environment & Labor Committee (ELC) members is to be upgraded, so meetings will be called by the chairperson of the Committee, and held regularly.

KCTU planning to politicize industrial disputes 

The KCTU is likely to select Mando, SJM, Ssangyong Motors and K2 as its target workplaces and politicize labor issues within those companies. In particular, the unions are planning to bring up issues through strikes and rallies and coalition with the opposition parties, and summon businessmen of the relevant companies as witnesses for parliamentary inspection. The unions could also demand formation of various subcommittees or special committees with an aim to continue politicizing issues within the workplace, even after the inspections.


③ Politicization of labor disputes at workplace-level

The majority of the ELC is populated by opposition members, which raises concerns that the lawmakers will attempt to intervene in the issues of individual workplaces, or summon businessmen to the National Assembly

As members of the DUP and the UPP are highly motivated to form a subcommittee to deal with the issues at Ssangyong Motors and Samsung Electronics, it is crucial for companies to be prepared in advance. In the general meeting of the ELC on July 26th, committee members agreed to refer a bill to form a subcommittee to the plenary session of the National Assembly if the members of the ruling and opposition parties can reach an agreement.

If the subcommittees are established, trade union members will increase their expectation due to the pro-labor activities by the lawmakers, and the reputation of the relevant companies may be damaged. Given this, thorough preparation is necessary based on objective facts just in case for the release of misinformation by politicians and labor, to appeal to the emotions of the general public.

Moreover, labor would push ahead with the summoning of businessmen as witnesses during the parliamentary inspection, to resolve issues at individual workplaces. In addition, issues at Hyundai Motors (in-house subcontract workers), Mando and SJM which recently imposed lockouts, are likely to be dealt with in the parliamentary inspections of 2012.