1. Labor making an issue of ordinary wage to expand the scope
Two umbrella unions held a press conference on September 4th to demand expansion of the definition of “ordinary wage”. In the press conference, the they called on ▲ legal court to rule in favor of expanding the definition of “ordinary wage”; ▲ the National Assembly to legislate following the court ruling; and ▲ employers to pay overdue wages, while presenting a petition signed by union members to the Supreme Court. They are expected to continue their efforts to expand the definition of “ordinary wage” until the Court renders judgment, while seeking to revise the Labor Standards Act through politicians. In response, the five business associations including the KEF presented a joint proposal to the government and politicians on September 2nd, asking to refrain from making regulative laws on such issues as ordinary wage working hour reduction.
<Table 1> Open debate over ordinary wage
| 1. Management:
“Ordinary wage” is a wage determined to be paid periodically or in lump sum to a worker for his/her prescribed work (Enforcement Decree of the Labor Standards Act). Therefore, only the wages given to a worker regularly within one unit of wage payment are recognized as “ordinary wage”.
2. Labor:
The Enforcement Decree of the Labor Standards Act provides no legal basis to limit a part of wages that should be paid to a worker for his/her prescribed work. Therefore the Enforcement Decree with no legal base, are invalid.
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Meanwhile, the Supreme Court gathered its member Justices to hold a public hearing on September 5th on “ordinary wage” dispute with KB Auto Tech. The Supreme Court selected the KB Auto Tech case for public hearing because this case includes most of the controversial issues surrounding “ordinary wage”. The KB Auto Tech case is composed of two separate issues: (1) 295 employees are demanding bonuses for New Year’s Day and Chuseok, with summer vacation to be included in “ordinary wage”; and (2), one retired employee is demanding that regularly paid bonuses should be included in “ordinary wage”. In particular, this case includes debate regarding the inclusion of allowances (regularly paid bonuses and other welfare benefits) paid at longer intervals than the normal salary payment cycle (one month) within the scope of “ordinary wage”.
2. FKTU focusing on some labor laws in the National Assembly
The FKTU demands that the following labor laws be revised at the regular session of the National Assembly:
<Table 2> Key labor laws selected by FKTU
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Issue
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Details
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Time-off and unifying of bargaining channels
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– Remove clauses on banning wage payment to full-time union officers and unifying bargaining channels.
– Delete the limit on the work duties eligible for time-off; set separate time-off limits for union officers dispatched to upper level unions.
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Reduction of Working Hours
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– Include work on holidays in “extended work” (starting 2014, opposing gradual introduction based on company size).
n Reduce working and recess hours, abolish the clause on statutory work hours for exceptional sectors, and ban the inclusive wage system.
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Strengthening of layoff requirements
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【Act on the Protection, etc. of Fixed-term & Part-time Employees】
– Restrict the employment period → restrict the reasons for use, expand the scope of application for the correction of discrimination.
【Act on the Protection, etc. of Dispatched Workers】
– Direct employment for workers carrying out regular & constant duties; legislate criteria for distinguishing between dispatch and subcontract employment.
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Reducing the number of non-regular workers and resolving discrimination
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– Urgent managerial needs → urgent managerial needs due to financial difficulty.
– Obligate an effort to avoid dismissal while strengthening the requirements for dismissal.
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Increase of minimum wage
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– Increase the minimum wage by at least 50% of the average wage of all workers; set a floor for minimum wage (i.e. an average of inflation and economic growth over 3 years).
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3. KCTU finalizes plans for 2nd half of 2013
The KCTU announced its major activities for the 2nd half of 2013 during a press conference on September 10th. The KCTU’s plans are to ▲unionize the non-unionized and non-regular workers, ▲oppose the privatization of public services, and ▲demand for a revision of the labor laws.
<Table 3> KCTU plans for labor struggles in the 2nd half of 2013
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Sept. 28
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Rally of non-regular workers in the public sector
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Oct. 22
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Rally protesting against the privatization of public services and for a guarantee of Basic Old-Age Pension
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Late Oct
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Rally of independent workers
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Oct. 26
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Rally of Korea Cargo Transport Workers Union
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Oct. 26
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KCTU rally opposing privatization of the public sector and guaranteeing their basic labor rights
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Nov. 9~10
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Nation-wide labor struggle
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4. KMWU demands special labor inspection of Samsung Electronics Service
The Samsung Electronics Service branch, affiliated with the Korean Metal Workers’ Union (KMWU) held a congress on September 8th, during which they decided to organize special funds for a strike ($4.60 per month) and for union title protection ($9.20 per month), which would be contributed by the union members. The union title protection fund will be used to pay wages its full-time staff members and laid-off workers as the result of a strike. The wage amount would be equivalent to the wage of employees of a company affiliated with Samsung Electronics Service ($1,855 per month).
In addition, the Samsung Electronics Service branch plans to pressure the Ministry of Employment & Labor (MOEL) for a special labor inspection. With this aim in mind, the branch plans to gather evidences of unfair labor practices as well as violations of the Labor Standards Act and the Occupational Safety & Health Act by Samsung Electronics Service and its affiliated companies. The MOEL did conduct its regular labor inspections on Samsung Electronics Service HQ and three Customer Service Centers in September.