Labor Relations Outlook in the 2nd half of 2011

1) Growing concerns over labor unrest with the implementation of enterprise-level multiple unions system
 
More confusion with attempts to set up new labor unions led by upper-level unions & Structural change of collective bargaining. 
 
With multiple unions allowed on July 1, the unionization rate is likely to increase because of upper-level unions’ attempt to set up new trade unions and split existing unions. Two umbrella union centers and the newborn 3rd labor umbrella group called “Federation of People’s Trade Union (FPTU)” are in a competition to establish new unions in large companies, especially targeting companies without a union. Also, these labor organizations concentrate their efforts to split existing unions and organize new unions by occupation (management, R&D, sales and non-regular workers). Consequently, if the unionization rate rises back to the level of the late 80s (19.8% in 1989), the labor-management relations is likely to worsen and many pro-labor policies are to be made with labors’ strengthened political power.
With implementation of multiple unions system, active measures should be taken to stabilize industrial relations. As well as CEO, all management should be well aware of the human resources management and make active efforts to hire more workers in charge of HRM and increase financial support.
Under multiple unions system, structural change of collective bargaining is expected to emerge as a major factor of labor conflicts as each union will demand for an individual bargaining. Metal Workers` Union and Health and Medical Workers` Union already said that they would go on a strike this summer demanding for the right of individual collective bargaining under the multiple unions system. What is more, unions’ demands are getting stronger on expanding the scope of union members and recognizing only one exclusive bargaining group.
 
 High bargaining cost and protracted bargaining period due to frequent legal disputes
 
Confusions over collective bargaining appears to go deeper such as how to make up a single bargaining channel or joint bargaining representative team, and how to divide the unit of bargaining. Also, legal disputes over the unfair labor practice and duty of fair representation are expected to increase. The Korean Confederation of Trade Unions distributed a guideline to regional and branch unions, which contains “Any direct and indirect discrimination among unions is forbidden and the responsibility of proof falls on employer”,
 
 
2) Labor struggle expected to be ’Political strife’ and ’Targeted’ on a certain workplace
 
 Long-term struggle targeted in a certain workplace and more frequent intervention from political circle are predicted for this year’s summer strife
 
Labor protest, this summer, is expected to be led mostly by the Korean Metal Workers Union(KMWU) and Korean Federation of Construction Industry Trade Unions (KFCITU). The KMWU is planning to finalize yes-or-no vote by 24th June on a general strike which is scheduled for early July. Also, an election is scheduled for senior official positions of the KMWU and other major trade unions. This may cause some difficulties for collective bargaining 2011. And sporadic strikes of KFCITU along with newly established Korean Federation of Public & Transportation Workers’ Unions(KPTU) are planned as KFCITU is demanding collective bargaining on the issues of regulating construction equipment supply while KPTU seeks to build up their capacity in preparation for industry-level bargaining.
This summer, labor groups are expected to carry out strikes based on issues rather than an intensive strife. In case of long-term labor disputes, labor groups are likely to make them an issue by linking to the parliamentary inspection. In this regard, interventions of the political circle on workplaces with long-term disputes are predicted during the parliamentary inspection and the national assembly sessions.


3) Labor groups strengthening political activities
 
 FKTU seeks to expand political influence through presidential & general election in 2012
 
FKTU is seeking to expand their political influence by recommending former FKTU officials for the upcoming elections. FKTU is expected to finalize their strategy for the elections at the central level by the end of this year. However differences are expected in the decision-making process because many members of the FKTU still support the ruling party, although FKTU severed their policy coalition with the Grand National Party in February this year. Thus, FKTU seems to compromise by deciding their supporting political parties at the central level with some exceptions of the former FKTU officials to be supported regardless of their party.
Unifying progressive political groups as the biggest project for KCTU in the 2nd half of the year, but the success is up in the air
The Korean Confederation of Trade Union (KCTU) will attempt to strengthen its political influence through unifying progressive political parties. The KCTU is aiming to complete amalgamating Democratic Labor Party(DLP) and New Progressive Party(NPP), and strengthen the position of the unified progressive party in the upcoming general and presidential elections.
However the outcome and the effect of the unified progressive party are still up in the air, since there still exist wide differences of ideologies and political stance within the labor communities and the progressive parties. Competition between National Liberation (NL) faction and People Democracy (PD) faction in the KCTU is still going on. DLP has an amicable attitude towards the alliance with the existing political circles (Democratic Party, People’s Participation Party), whereas NPP is being negative toward the alliance.
Besides, the KCTU is planning to strengthen political cooperation with the four opposition parties to solve the current issues such as revision of the Trade Union Act. It is trying to expand and reform ‘Labor council with labor communities and the 4 opposition parties’ to carry forward a meeting with labor communities, Democratic Party, and Grand National Party and to make a bargaining channel at Environment and Labor Committee in the National Assembly level.
 
4) Rising concerns over political communities’ pro-labor attitude
 
Concerns are growing over political communities’ pro-labor attitude with elections ahead in 2012 and labor’s political struggle
 
The labor communities introduced political struggle as the main project in the 2nd half of 2011 and decided to stage anti-candidate campaigns if their demands are not met. With changes of representative of GNP and the Minister of Employment and Labor in the 1st half of 2011, they are expecting to have meetings with the political communities. The FKTU is demanding cooperation from the government and political communities to revise regulations such as the Trade Union Act, and the KCTU is trying to form a communication channel with political communities to solve workplace issues with long-term disputes such as Hyundai Motors and Hanjin Heavy Industries and Constructions.
 
【 Table1 】 Major populism-driven bills pending in the National Assembly
 
① Legalization of national holidays and introduction of substitute holidays
② Strengthening regulations related to in-house subcontracting
③ Recognizing those in special type of employment as ‘workers’ to apply labor laws
④ Extension of maternity and paternity leave
⑤ Compulsory extension of retirement age
* A total of 133 populism-driven bills are brought to the 18th National Assembly
 
 
 5) Labor making an issue of ‘Occupational Safety and Health matters
 
Labor groups, using high interest of general public in health care rights, making an issue of occupational safety and health matters
 
The labor communities are planning to focus on occupational safety and health issues in cooperation with confederations and regional branches. Accordingly, the communities politicize sleep disorder issues and pushing ahead with double shift in daytime. It also politicizes regulations on asbestos, trying to bring trade unions of manufacturing industries such as synthetic fiber and metal, and construction industries together.
In the meantime, labor communities are trying to put more responsibilities on primary contractors regarding subcontracted and dispatched workers’ health care. They are seeking ways to put pressure on primary contractors through blaming the primary contractors for diseases of subcontracted workers and demanding to form a consultative body for occupational safety and health between primary and subcontract businesses.

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