1) FKTU seeks to resolve current labor issues through policy meeting with Saenuri Party
The Federation of Korean Trade Unions (FKTU) held a policy meeting with the Saenuri Party on 13 May to seek its assistance with current labor issues. In the policy meeting, the FKTU complained that the government is pressuring it to accept what the FKTU has termed its 5 unacceptable proposals*. The FKTU also urged the government to cease plans for structural reform of the labor market.
*5 unacceptable proposals for the FKTU: j Extension of the allowed duration of non-regular employment and expansion of types of jobs allowed as dispatched work, k Phased implementation of the 52 hour work week after including holiday work into extended work, l Mandatory extension of retirement age together with a wage peak system, m Restructuring of wage systems, and n Easing of requirements for unfavorable changes to rules of employment and general dismissals
The Saenuri Party announced its basic position that it would listen to the FKTU’s opinions and seek ways to support it through policy meetings.
[Table 1] FKTU Policy Proposals
| Issue | Details |
| Ordinary Wage | Stipulate in the Labor Standards Act (LSA) the definition and standards for money and valuables excluded from ordinary wage, but include regular bonuses |
| Working Hours | 52 working hours per week, include holiday work in extended work, reduce the number of businesses exempt from statutory working-hour requirements |
| Extension of Retirement Age | Mandatory outplacement services for large enterprises |
| Shared Growth | Consultation on adjusting supply prices, profit sharing, allowing more agents with obligation to the right to accuse |
| Non-regular Employment | Restrict the use of non-regular workers and the number allowed, strengthen labor inspections for illegal dispatch |
| Employment Stability | Tighten Labor Standards Act (LSA) requirements for layoffs |
| Minimum Wage | Target KRW 10,000 for minimum wage within the term of the present government, strengthen penalties for violation of minimum wage |
| Industrial Relations | Improve regulations regarding compensation for damage and provisional attachment, ensure activities of union officers who are dispatched to umbrella unions |
| Occupational Safety | Acknowledge work-related commuting accidents as occupational accidents, strengthen the right of work suspension in workplace |
2) KMWU (under the KCTU) confirms its strike plans for May & June
The Korea Metal Industry Employers Association (KMIEA) announced employers’ positions on issues such as a minimum wage of KRW 5,852 per hour in the metal industry during the 4th industry-level negotiations with the Korean Metal Workers’ Union (KMWU) (12 May).
[Table 2] Labor Proposals & Management Positions in Metal Industry Negotiations
| Issue | KMWU
Proposals |
KMIEA
Positions |
| Minimum Wage within the Industry | KRW 10,000/hour | KRW 5,852/hour
KRW 1,322,552/month |
| Employment Stability | If an in-house subcontractor changes, the new subcontractor should maintain the current employment status, collective agreements and so on | – |
| Risk Assessments | Labor and management jointly implement a risk assessment once a year | Determine times and specific methods for risk assessments in workplaces through consultations between labor and management |
| Conversion of Non-regular Workers to Regular Status | Prohibit subcontracting, convert current in-house workers to regular status before end of 2015 | If non-regular workers (fixed-term, part-time, and dispatch workers) are employed more than 2 years and additional workers are needed, employers will endeavor to convert those non-regular workers to regular employment in accordance with company hiring policies |
| Others | – | Revise “sole bargaining union” to “bargaining labor union” in Article 3 of the industry-level collective agreement |
The KMWU held a central executive committee meeting on 12 May and confirmed its strike plans. According to these plans, the KMWU will announce the failure of industry-level negotiations on 2 June and will likely apply for mediation of the labor disputes on 16 June.
[Table 3] Major KMWU Events in May & June
| ▲21 May: Rally in front of each Ministry of Employment & Labor (MOEL) regional office
▲16 June: 1st request for mediation ▲26 June: Series of strikes on non-regular employment ▲3 July: 2nd request for mediation |
▲2 June: Announce failure of industry-level negotiations
▲22~24 June: Vote on industrial action ▲27 June: KCTU rally on minimum wage ▲4 July: National Manufacturing Workers’ Rally |
3) The KCTU takes action to block MOEL plans to push ahead with corrective guidance on illegalㆍunreasonable collective agreements.
The KCTU plans to investigate current collective agreements with its affiliated unions as a response to the government’s plans to issue corrective guidance on illegal and unreasonable collective agreements*.
* The MOEL has announced plans to begin investigations and guidance on correction of illegal/unreasonable collective agreements (such as giving priority to retiree family members for employment) in workplaces with more than 100 employees from 20 April.
The KCTU plans to conduct a survey to investigate whether its affiliated unions give priority to union member family for employment in terms of background and details.
The KCTU has accused the Minister of Employment & Labor, Mr. Lee Ki-kwon, of abuse of authority for the Ministry’s plans to issue guidance on corrective action for collective agreements. The KCTU plans to conduct training in workplaces based on the findings of its survey.