Labor Trends

Mr. Moon Jin-kook was elected the new president of the FKTU on September 20 with 74.1% of the vote. Mr. Moon will hold the leadership of the FKTU until January 2014, the remaining term of his predecessor, Mr. Lee Yong-deuk. Mr. Moon is a former president of the KTU (Korean Taxi Workers’ Union) and former vice-president of the FKTU.

Mr. Moon plans to realize his major election pledges which include revision of the Trade Union Act and extension of the retirement age to 60, by strengthening coalition with some politicians. In particular, he plans to demand revision of several labor laws during the regular sessions of the National Assembly along with some changes in the administrative interpretation regarding the time-off system.

For the time being, he plans to maintain the coalition with the DUP (Democratic United Party) while seeking to resolve current labor issues through politicians from both the ruling and opposition parties. He is also seeking to place some FKTU personnel into the government or government agencies during the next administration. But conflicts are expected to continue over political strategies among the member unions and regional offices under the FKTU. Also, there is a possibility that the FKTU may declare political neutrality if the approval ratings gap between the presidential candidates of the ruling party and opposition parties is razor-thin.

Mr. Moon is likely to focus more on improving relationships with the government than intervening in the labor relations at individual workplaces. He seems reluctant to restore cooperation with the KCTU and continues to hold the Korea Labor Unions Confederation (KLUC) in check. Because of this, strong cooperation between the umbrella unions is not expected.

The KCTU held its Central Executive Committee Meeting on September 6 to discuss its action plans. The KCTU is planning to bring up the issues of layoffs and ‘violent attacks on trade union members at the SJM factory’ at the parliamentary inspection and continue on activities for labor law revision. The KCTU plans to hold rallies calling for revision of labor laws during the opening session of the Environment & Labor Committee (Sep 13 ~ 26) and the plenary session of the National Assembly (Sep 27, Oct 4). However, difficulties are expected for KCTU in carrying out those plans due to internal conflicts triggered by the poor outcome of the general strike in August, election methods for the next KCTU election and its political strategies leading up to the presidential elections.

The KCTU is expected to change its method of choosing leadership from direct elections to indirect elections. Industrial unions such as the KMWU and the KHMU (Korea Health & Medical Workers’ Union) are insisting that the next KCTU election should be conducted through direct elections, but Mr. Kim Young-hoon, the President of the KCTU is pushing for indirect elections. As conflict over the next KCTU election spreads, the KCTU will finalize its decision at the Special Convention on September 26.

Meanwhile, industrial unions affiliated with the KCTU are forming independent political strategies for the presidential election while internal conflict within the KCTU deepens. Independent political activities by the industrial unions are of concerns because it may lead politicians to intervene in individual labor disputes at various companies.

Industrial bargaining in the metal manufacturing sector is being finalized. Labor and management of the major automakers (such as Hyundai, Kia, and GM Korea) have agreed to introduce a daytime two-shift system.

In the 4^th quarter of 2012, the KMWU (Korean Metal Workers’ Union) is planning to focus on preparation of measures against the increasing number of multiple unions in workplaces. Since the introduction of the multiple union system on July 11, 2011, new trade unions have been formed in 25 of 200 workplaces affiliated with the KMWU. Of those 25 workplaces, the KMWU has the majority of trade union members in only 4 workplaces (SJM, Kumho Tire, Delta Cast, and Kyung Nam Pharmaceuticals Co. Ltd).

Concerned that their influence may be weakening, the KMWU is planning to increase their demands for revision of the labor laws. The Kyung Nam branch of the KMWU argues that permitting the multiple unions system should be implemented at the industry or regional level rather than company level. However, most union members of the KWMU take the view that prohibiting multiple trade unions at company level is not justifiable.

Also, the KMWU is planning to set up a Joint Rally Camp to strengthen solidarity at regional level.