In 2011, union pluralism is emerging as the hottest issue of labor relations. Labor, business and government has made a joint effort to revise the Trade Union and Labor Relations Adjustment Act (TULRAA) for 13 years. According to the revised TULRAA, the wage payment for the full-time union officials is banned and the newly introduced time-off system takes effect on July 2010. Also, multiple unions can be set up at an individual workplace level from July 2011, however, only one bargaining channel is allowed under this multiple union system.
(1) Trends of labor groups
The two measures (prohibition of wage payment to full-time union officials and establishment of the multiple union system) towards advancing industrial relations are facing significant challenges after the presidential election of the Federation of Korean Trade Unions (FKTU) on Jan. 25th, 2011. Mr. Yong-Deuk Lee, the new president of the FKTU, is demanding a full revision of the TULRAA and declared the severance of policy coalition with the Grand National Party right after he was elected.
In fact, the FKTU has been dealing with significant internal conflict since implementation of the current TULRAA. Settlement of problems regarding wage payment for full-time union officials dispatched to higher organizations has been difficult, and complaints related to the time-off system have been getting louder from some member companies, such as banks, which have divided workplaces. Considering these situations, Mr. Yong-Deuk Lee pledged a revision of the TULRAA during his election campaign.
Given these circumstance, FKTU declares to break away from their 4-year-long coalition with the GNP and request for the social dialogue with business and government. Starting with the national laborers’ convention on March 1st, FKTU is planning to strike aggressively for the purpose of overall re-amendment of TULRAA during the special session of the National Assembly this year or 2012. Especially, FKTU is preparing a strategy to use the political circle for carrying out their activities. FKTU will promote a campaign to vote against anti-labor politicians in the April by-elections and form the alliance with the political circle by guaranteeing the extensive support in the coming presidential and general elections.
Due to this new movement by the FKTU, the Grand National Party is trying to coax the umbrella union to continue policy coalition through various means, including rushing over the policy planning committee for discussions. The GNP has also formed a task force to maintain communication with the FKTU in response to the severance of policy ties.
The Korean Confederation of Trade Unions (KCTU) is also trying to revise the current TULRAA. On Sep. 9th, 2010, the KCTU suggested to the 5 opposition parties specific parts of the TULRAA that could be revised. The suggestions included: a) labor and management deciding to allow wage payment for full-time union officials on their own, b) guaranteeing bargaining autonomy at the point of introducing the multiple union system, c) legislating collective bargaining at the industrial level, and d) expanding the definition of employer under the TULRAA. In order to accomplish the revision, the KCTU is running a ‘Five Opposition Parties – KCTU’ meeting with the 5 opposition parties, including the Democratic Party and the Democratic Labor Party. Based on these suggestions from the KCTU, the meeting is discussing plans for actual work from Jan. 2011.
[Table 1] KCTU Demands for Revision of the TULRAA
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Item
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Demands
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Wage payment
for full-time union officials
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· Delete provisions which prohibit employers from paying wages to full-time union officials.
· Exclude from unfair labor practices employers paying wages to full-time union officials.
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Multiple-union bargaining autonomy
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· Delete provisions regarding compulsory integration of bargaining channels.
· Delete provisions which restrict strikes by multiple unions.
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Legislating industrial-level bargaining
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· Create a legal obligation for employers to collectively bargain with big trade unions.
· Improve regulations for extending the subject of effect of a collective agreement (extend the subject of effect, so if a collective agreement influences more than 1/2 of the union members in the same industry, region or type of business, all union members are under the influence of the agreement)
· Indicate minimum standards of effect of agreements with big trade unions (restrict the validity of a collective agreement at company level)
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Others
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· Restrict right to unilaterally cancel collective agreements (set up requirements to cancel)
· Extend the definition of “user” under the TULRAA (those who have actual control or leverage)
· Restrict damage claims and provisional attachment regarding trade union activities.
· Abolish provisions that enforce minimum services.
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Source: ’The right ways in revising the TULRAA’
(Extracted from materials for Joint Meeting of KCTU and the 5 Opposition Parties on Sep. 9th, 2010)
Regardless of the actions of the labor groups, the possibility of the TULRAA being revised is low.
(2) Trends of political communities
However, the possibility of a revision of the TULRAA cannot be ignored considering the current political circumstances, with a general election in April, and the presidential election in December. Politicians cannot neglect the demands of labor considering these elections ahead, especially since labor will use these elections to try to have their demands met. In particular, the Grand National Party would not want to allow severance of policy ties with the FKTU since the party is seeking the labor vote. The issue surrounding the revision of the TULRAA can act as a catalyst for the ‘Coalition of Progressive Groups’ discussions, which bring together the KCTU and the 5 opposition parties, who have already been working together on labor issues, as well as political ones such as opposition to the Korea-US Free Trade Agreement.
(3) Outlook
As the two umbrella labor unions plan to develop closer relations with each other aiming at amending TULRAA, the growing joint struggle like a mass rally is expected in 2011. The government is firmly determined to keep the current law, and the Grand National Party holds a majority of the Assembly seats as the ruling party. Currently, the government is indicating that another revision of the TULRAA is impossible since it has been less than 1 year since the 1st revised TULRAA was introduced.
Aside from the issue of a revision of the TULRAA in the National Assembly, these ‘Coalition of Progressive Groups’ discussions can pressure companies. Even a weak possibility of another revision of the TULRAA can bring confusion to the workplace, especially with little time left for introduction of the multiple union system on July 1st, 2011. If companies can predict some of the changes ahead and design strategies for dealing with those changes, they can prepare for a system that has the potential to change the whole structure of industrial relations. We should not forget that companies have endured extensive chaos and industrial disputes from confusion and delay in implementing the time-off system through the revision of the TULRAA in 2010.