Industrial relations in Korea in 2011 were stable. Particularly, the time-off and multiple unions systems started off well despite a lot of concern.
Nevertheless, internal conflicts still exist. The intervention in labor disputes by some politicians and civic groups through the ‘Hope Bus’ distorted labor-management relations in the workplace, and caused even proper business activities to be denounced as immoral.
Industrial relations in Korea are still being held hostage by politically motivated labor groups and pro-labor actions by some politicians, whereas many international competitors are focused on improving national competitiveness. Moreover, there is a growing concern that increased political and social chaos will come out of troubled industrial relations before the general and presidential elections in 2012.
Although the multiple unions system is making a soft landing in workplaces now, the next 3 or 4 years will determine its success
The multiple unions system was introduced in workplaces in July 2011. Contrary to early expectations, the system has not caused any major upheaval. Of the 498 new trade unions established by the end of September, 82.1% came out of existing unions. In addition, 89 new trade unions were formed in companies without trade unions previously, but have not received enough support from the workers.
【Figure 1】Trade Union Membership
Even though its introduction has been smooth, the multiple unions system will still be an important issue for industrial relations in 2012. Labor groups tend to solve internal conflict by focusing on external issues. Organizing the new trade unions and securing their collective power will be the main measures the umbrella unions use to resolve opposition from their memberships regarding political direction, conflicts between trade unions of regular and non-regular workers, stagnation of collective bargaining at the industrial level, and unions focusing on political struggle.
In particular, labor communities will focus on organizing trade unions in the services industries such as hospitals, department stores, supermarkets, public sector services, and retail while they continue to organize trade unions in companies without unions. Irresponsible promises continue to be made, to do such things as reduce working hours, increase break times, hike wages, bring in more staff, and extend welfare programs, all without considering the business environment or a company’s financial situation. The attempt to organize new unions is worrisome since it may damage corporate peace by raising worker expectations and distrust for management.
Labor group attempts to evade time-off system may reappear
It will have been 3 years in 2012 since the introduction of the time-off system. The system appears have been accepted overall, with 95.2% having been introduced by the end of Q3 2011, with a compliance rate of 99.4%.
Despite these figures, caution is necessary before concluding that the system has been fully accepted. Attempts have been made to preserve wages for full-time union officers by increasing union membership fees or creation of a standing committee.
Indeed, some unions have complied with the time-off limits but are planning to bring payment of full-time union officers back through collective bargaining or additional negotiations during the political jockeying next year.
Companies should seek consensus between labor and management on compliance with the time-off limit, and healthy industrial relationships should be formed within legal boundaries.
Politicized labor groups and pro-labor actions by some politicians causing disorder in industrial relations
All three umbrella unions (including the new Korean Labor Unions Confederation) are expected to gather their political forces towards the general and presidential elections in 2012, but in different directions.
The Federation of Korean Trade Unions severed a policy coalition with the Grand National Party, formed before the presidential election in 2007, right after Mr. Yong-Deuk Lee was elected as its new president. After this, Mr. Lee has tried to solve the umbrella’s internal issues by promising political support both to the ruling and opposition parties. This is expected to continue in 2012. The FKTU is likely to promote financial stability and the election of former FKTU officers into the National Assembly in the general elections in April.
The Korean Confederation of Trade Unions is expected to bring pro-labor political circles together around the Democratic Labor Party, and aim to unify pro-labor parties. In particular, the KCTU is planning to secure its position by participating in the process of choosing a single opposition candidate for the upcoming presidential election, if the united pro-labor party wins more than 10 seats in the general elections.
The Korean Labor Unions Confederation is likely to solidify its position and strengthen its policy coalition with the ruling party since it has few members in relative terms. Politicians are also welcoming these labor movements, and developing pro-labor platforms. It is concerning that all political parties will seek to appear pro-labor regardless of their positions.
Politicians have been promoting revision of the Trade Union and Labor Relations Adjustment Act and have proposed labor-friendly bills in 2011. They have also promised political solutions to workplaces with long-term disputes while visiting such workplaces as Hanjin Heavy Industries & Construction and Yoosung Enterprises, and participating in many labor gatherings, such as Hope Bus rallies and the National Labor Assembly.
Political communities are expected to work on labor-friendly legislation related to maternity benefits, non-regular workers, and minimum wage. In particular, the KCTU announced plans for a large strike in June 2012 over minimum wage and non-regular worker issues, which raises concerns over policy coalitions between labor and politicians.
The year 2012 is at a crossroads for industrial relations between co-prosperity or retrogression. Amidst concerns over the lame-duck status of the current government, labor groups and politicians seem bent on promoting disputes in the workplace. The governments should deal with illegal actions in accordance with law and principle, to prevent chaos not only in industrial relations but also in the society. Most people in the nation will support such measured and principled responses.