Labor Trends

 FKTU expected to face difficulties in 2nd half of 2012 due to internal strife

Mr. Moon Jin-kook, elected president of the FKTU on September 20, has replaced some staff members in a move to strengthen his influence within the FKTU. He is also focusing on improving relations with the government and business groups to resolve the FKTU’s financial difficulties, and with the government and Saenuri Party regarding such issues as dispatched union officials to upper-level unions.

Mr. Moon also expressed his intention to work closely with the Democratic United Party (DUP) and the Saenuri Party on labor law revision. But pro-DUP groups within the FKTU are criticizing the leadership that this political stance amounts to a change in the FKTU’s political strategy. One of these groups, the Korean Financial Industry Union (KFIU), released a statement on October 8 stating that the FKTU should continue supporting only the DUP. They are concerned that Mr. Moon will declare political neutrality in the coming presidential election.

Meanwhile, at the Central Executive Committee Meeting on October 15, the FKTU decided to demand that each party’s presidential candidates agree to revise certain labor laws and resolve wage issues for dispatched full-time union officials in the fourth quarter. But difficulties are expected for the FKTU because of internal conflicts surrounding its political stance.


Conflict deepens in the KCTU over resignation of its president and political strategy

At the Central Executive Committee Meeting held on October 11, Mr. Kim Young-hoon, president of the KCTU, announced his intention to resign to take responsibility for failing to implement a direct election system, scheduled to be enforced from the end of this year. Mr. Kim proposed that a direct election system be introduced by 2016 (originally scheduled for 2013), but failed to reach a quorum.

The direct election system was discussed at the Special Convention (October 30) once again. Prior to the Special Convention, Mr. Kim appealed to union members for their support on this issue. Mr. Kim expected to resign after the Special Convention. After Mr. Kim’s resignation, KCTU leadership is hoping to place senior vice president Jeong Eui-hun as acting president of the KCTU, but the KMWU (Korean Metal Workers Union) and the KPTU (Korean Public & Social Service and Transportation Workers’ Union) are demanding composition of an ‘Emergency Council’.

Differences within the KCTU regarding nomination of a presidential candidate from the labor community are the source of another conflict. Some are claiming that nomination should come strictly from within the labor community, others argue that a candidate should be jointly nominated with civic groups such as People’s Power, while a third group is demanding a coalition with the DUP.


Labor relations in finance • healthcare sectors stabilizing; relations in public sector worsening

Labor and management in the financial sector finalized a 2012 collective bargaining agreement on October 15. They were able to reach an agreement on major issues at the 7th industry-level bargaining sessions on October 5. In particular, the employers’ association suggested a 3.0% increase in wages while trade unions demanded a 3.5% increase. The actual wage increase rate is 0.2% as trade union plans to share 0.3% increase on fund for Corporate Social Responsibility.

A strike at the Ewha Womans University Medical Center lasted for 28 days, ending on October 2 as the Korean Health & Medical Workers’ Union (KHMW) and management of Ewha Womans University Medical Center reached a settlement. The KHWU demanded an 8.7% increase in wages and regular contracts for non-regular workers, which failed to consider the management situation of the hospital. In the end, the KHWU ended the strike after accepting a tentative agreement reached with mediation by the Seoul Regional Ministry of Employment and Labor.

Meanwhile, the KPTU held a series of strikes in October, demanding influence on the government budget for 2013, revision of the Act on the Management of Public Institutions, and changes to social insurance. At their Special Convention on October 17, the KPTU finalized its action plan for the 2nd half of 2012 but failed to settle other issues due to a lack of quorum.

[ Table 1 ] Main Features of 2012 Finance Sector Collective Agreement

In the 2nd half of 2012, most KPTU strikes are likely to be held outdoors due to financial difficulties and low participation from its members. Only 50% of KPTU members paid union dues for the strikes and relatively few members from the Korea Cargo Transport Workers Union (KCTW) and Korean Railway Workers’ Union (KRWU) participated.

[Table 2] Major Strikes held by the KPTU in October