Wage Bargaining Settlement Rate and Rate of Agreed Wage Increase
In the first three months of 2011, the wage bargaining settlement rate has not been so high; however, collective bargaining (including industry level) is expected to start in earnest after April. The wage bargaining settlement rate in the first quarter of 2011 was 4.7%, down from 6.5% a year earlier due to the time-off and multiple union systems. To begin full-scale bargaining, the Korean Metal Workers Union and the Employers Group of the Metal Industry held a meeting on April 19. Also, collective bargaining in Korea’s major corporations is just getting started.
While the wage increase in the first quarter of this year was slightly higher than the same period last year, it is concerned that the agreed wage increase between labor and management is expected to accelerate after May, as labor demands become excessive due to the recent rise in consumer prices and increase in union dues after the implementation of the time-off system.
Demands for wage increases are also expected to be greater in the second quarter when major companies begin collective bargaining procedures this year.
[Figure 1] Q1 Wage increase trend in 5 years
Labor Disputes and Lost Work Days
The number of labor disputes during the first quarter of this year was at the same level as last year. However, the number of lost work days has seen a significant 50 percent increase due to the higher number of prolonged strikes. The long-term strikes at Hanjin Heavy industries & Construction and Jeonju City Bus Company are the major reasons for this increase in lost work days. Of special note is that all the strikes in the first quarter have occurred in workplaces affiliated with the Korean Confederation of Trade Unions (KCTU).
[Figure 2] Q1 Trend in labor disputes and lost work days in 5 years (Units : case, day)
Declarations of Labor-Management Cooperation
The number of declarations of labor-management cooperation has dropped from a year earlier due to competition among labor groups as the time-off system was implemented last year and the multiple unions system is scheduled to come into effect this July 1.
[Figure 3] Q1 Trend in labor-management cooperation declaration in 3 years (Number of cases)
As existing trade unions are reacting passively to cooperation between labor and management to avoid disputes over their political identity, declarations of labor-management cooperation were concentrated in companies without trade unions. As for the number of declarations of labor-management cooperation, 28 were made by companies with no union, 6 from companies affiliated with the Federation of Korean Trade Unions, one from a company affiliated with the Korean Confederation of Trade Unions and one from a company with no umbrella union affiliation.