Labor Trends – Labor InFocus

Unionization rate falls to a single digit (9.8%) for the first time

The unionization rate continues to fall while the number of trade unions unaffiliated with umbrella unions is increasing. Continuously falling over the past 10 years, the unionization rate was 9.8% in December 2010, 0.35% lower than the previous year.

【Figure 1】 Falling Uionization Trend

Of particular note is that the number of trade union members unaffiliated with any umbrella union is steadily increasing as a result of the animosity created by the ideological and militant labor activities of the two umbrella unions.

【Figure 2】 Union Membership Trends

(Unit: thousand persons)

Labor and management at Hanjin Heavy Industries & Construction reach agreement on laid off workers

The long-term dispute at Hanjin Heavy Industries & Construction subsided but labor conflicts continue in the metal industry surrounding mass layoffs at Pioneer Semiconductor Metals Corporation (PSMC).

On 9th November, labor and management at Hanjin reached an agreement on issues surrounding the layoffs. The Hanjin branch of the Korean Metal Workers’ Union decided to uphold the agreement at its general meeting on 10th November.

[ Main Details of the Hanjin Labor-Management Agreement ]

1. The company shall rehire 94 workers within one year. The period of employment shall be calculated from the date of reemployment.
2. The company shall pay cost-of-living allowances to the 94 laid off workers – 2 million KRW (1,700 USD) per worker.
3. Clause 1 & 2 shall only apply to workers who withdraw lawsuits filed against the company and applications for remedy for unfair labor practices.
4. Labor and management shall drop all criminal charges and minimize claims for damages.
5. This agreement shall take effect from the date all 4 protestors leave the crane.

Labor groups again seeking to make an issue of non-regular workers

Labor groups are expected to strengthen their political influence by again raising the issue of the increase in non-regular workers in the labor market.

According to ’Research on Employment Type and Non-Paid Workers’ published by Statistics Korea in October of this year, the number of non-regular workers reached 5.9 million (34.2%) in August, increasing from the 5.6 million (33.3%) recorded the previous year.

There was no progress on the non-regular worker issue in the first half of the year because labor groups were focused on activities related to revision of the Trade Union Act and the amalgamation of progressive political parties. Labor groups are therefore expected to resume raising the issue in the future aiming to resolve it through strengthened cooperation with political circles.

In October, the Korean Confederation of Trade Unions (KCTU) held rallies demanding a world without non-regular workers, while supporting election campaigns that raised the issue of non-regular workers. In particular, labor groups held a conference with Seoul’s mayor-elect Park Won-soon to sign a policy agreement granting regular status to non-regular workers.

Launching of the Korean Labor Union Confederation

The Korean Labor Union Confederation (the KLUC) was launched this year, made up of 70 trade unions totaling 30,000 members. Considering that they are much smaller than the other two umbrella unions, the KLUC is expected to focus on expanding their membership at this stage.

At the inaugural meeting on November 1, the KLUC union membership elected Jung Yeon-soo, president of the Seoul Metro Labor Union, as its leader and officially declared its establishment.

【Table 1】Composition of the KLUC

*Trade Union*	*Number of Union Members*
Regional Public Corporation Trade Union	16,756
Korea Liberal Teachers’ Union	2,994
Korean Sanitation Service Workers’ Union	1,525
Korean Transport Workers’ Union	828
Korean Transport Industry Trade Union	852
Korean Metro Railway Industry Trade Union	2,150

The KLUC will seek to expand its membership in the private sector and actively engage in the making of government policy to make up for its size. As can be seen in Table 1, the KLUC is mainly comprised of union members from the public sector and the transport industry. Hence, the KLUC is expected to seek new members from trade unions of large companies in the private sector.

It is also looking to create labor representation at the Economic & Social Development Commission and the Minimum Wage Council, while actively engaging in such areas as composition of public sector budgets and transport industry policy.

The FKTU changing its relations with the government from ‘conflict’ to ’dialogue’

The president of the Federation of Korean Trade Unions (FKTU), Lee Yong-deuk, declared the FKTU an opponent of the government by breaking its coalition with the Grand National Party (GNP), pledging revision of the Trade Union Act at his inauguration in February.

He also restored close ties with the KCTU and strengthened the FKTU’s coalition with progressive political groups by holding a labor policy meeting with labor and 4 opposition parties. However, due to opposition within the FKTU and pending issues regarding wage payment to dispatched full-time union officials, the FKTU has resumed dialogue with the government.

As a result, the FKTU and the Ministry of Employment & Labor (MOEL) have drawn up an agreement for the upcoming Committee on Advancement of Labor & Management Culture within the Economic & Social Development Commission in November.

[ Main Details of the FKTU-MOEL Agreement ]

① The FKTU shall not demand amendment of the Trade Union Act during the current administration.

② Issues regarding support for the public interests of labor groups, and decision on whether to hold the Time-Off System Deliberation Committee shall be discussed at the Committee on Advancement of Labor & Management Culture.

But some union members within the FKTU oppose the decision to halt activities on revision of the Trade Union Act. Representatives from the Korean Financial Industry Union, the Federation of Korean Chemical Worker’s Union and many regional branch representatives are demanding that the agreement made between the FKTU and the MOEL be withdrawn by FKTU leadership, and a special session of congress held.

The FKTU plans to resolve the issue of wage payment to dispatched full-time union officials through the Committee on Advancement of Labor & Management Culture, and minimize internal conflict by holding a Time-Off System Deliberation Committee meeting by the end of the year.