1) Current Trend of New Trade Union Establishment
A total of 398 trade unions have reported their establishment since the multiple union system was introduced in the workplace. 76 Certificates of Establishment were submitted on July 1st, but the average number of submissions per day has dropped significantly to less than 10 since late July.
【 Picture 1 】Trend of New Trade Union Establishment
* Source: MOEL
Most workplaces where new trade unions have been established have existing trade unions belonging to the umbrella organizations (FKTU or KCTU).
【 Table 1 】Number of New Trade Unions
|
Total
|
Workplaces
affiliated with FKTU
|
Workplaces
affiliated with KCTU
|
Workplaces
affiliated with both FKTU & KCTU
|
|
291
|
140
|
105
|
46
|
* Source: MOEL
* Excluding workplaces with no trade union (63) or not affiliated with any umbrella organization (44)
New trade unions were established mostly in small and medium businesses. In detail, 286 new trade unions were established in businesses with fewer than 300 employees. In contrast, only 47 were established in businesses with more than 1,000 employees.
【 Table 2 】 Number of New Trade Unions by Company Size
|
Number of Employees
|
Fewer than 100
|
100~299
|
300~999
|
1,000 or More
|
Total
|
|
Number of New Unions
|
154
|
132
|
49
|
47
|
382
|
* Source: MOEL
* 16 industry-level unions are excluded because company size is unclear
Out of the 398 new trade unions, 195 (49%) were established in the taxi and bus industry while 203 (51%) were established in other sectors such as metal or finance. Only 54 chose their umbrella union, while the rest (344) remained independent, suggesting that most of the new trade unions have not decided on which umbrella union to join.
【 Table 3 】Umbrella Union Chosen by New Trade Unions
|
Umbrella Union
|
FKTU
|
KCTU
|
No Umbrella Union
|
|
Total: 398
|
34
|
20
|
344
|
* Source: MOEL
As of July 31, the number of new trade unions with a majority of union members in the workplace reached 78. In workplaces with existing trade unions belonging to KCTU, for example, 47 of the new trade unions gained a majority of union members while 61 new trade unions gained a majority of the company’s employees as members.
【 Table 4 】 Number of New Union Members in Workplaces with Korean Metal Workers’ Union (KMWU)
|
Company
|
Number of Employees
|
Number of KMWU Members
|
Number of Members of New Trade Unions
|
|
Kumho Tires
|
5,000
|
3,370
|
46
|
|
KEC
|
900
|
154
|
467
|
|
Doosan Mottrol
|
480
|
110
|
133
|
|
Bowater Korea
|
216
|
80
|
100
|
|
NTEC
|
174
|
44
|
51
|
|
Parker Mobile Control Division Asia
|
110
|
28
|
55
|
|
AVO Carbon Korea
|
85
|
50
|
11
|
* Source: MOEL, KEF (7. 31)
2) Establishment trends
The downward trend of new union establishment after July 1
It seems that the downward trend of new union establishment is due to the fact that many new unions were ready to register themselves on July 1, the enforcement date of the multiple union system. If registration of the union is delayed, the union can be disadvantaged by implementation of the single bargaining channel system. It is therefore presumed that most new unions completed their registration upon the implementation of the multiple union system.
Many new unions formed in bus and cab service industry
Many new trade unions were established in the bus and cab service industry, mainly due to resistance against the vested rights of the existing trade union leadership, and poor HR and labor management systems .
For cab services, the majority of new unions were established by workers who had not joined any established unions. Various workers’ groups, such as mutual aid groups or co-ops, also affected the establishment of the new unions.
For bus services, a considerable number of new unions joined the Korean Public Services and Transportation Workers’ Unions (KPTU).
Establishment of new trade unions, regardless of the stability of industrial relations, is the point to focus on in both service industries.
Majority of new unions did not join umbrella unions
The fact that new trade unions are not joining an umbrella union can be attributed to internal causes such as grievances about their companies or existing trade unions. Also of note, new trade unions that did not join an umbrella union also did not form a 3rd umbrella organization.
It is still possible that the new unions may join a new umbrella union in the future depending on the situation, or join an existing umbrella union.
Internal factors in workplaces or existing unions reason for majority of new trade unions
Major influences behind the establishment of new unions included a backlash against trade union militancy, leadership struggles and resistance to the vested rights of leadership in the existing unions, and the existence of groups isolated by the existing trade union.
3) Future Prospects
Expect a slowdown in new union formation
The number of new unions is not likely to increase for a while due to the unfavorable conditions for union activities and concerns over the establishment of new unions.
Remaining possibility of new trade unions forming in major workplaces
So far, new trade unions have been established at KT, Kumho Tire, the Westin Chosun Hotel, Daewoo Securities, Samsung Everland and Renault-Samsung Motors. Hereafter, the success of the new unions, the status and role of existing unions, labor issues such as layoffs and employers’ labor management, will be critical elements in whether more new trade unions are established.
Potential for labor-labor and labor- management conflicts
There are concerns that competition between unions seeking the upper hand where new unions have been established, and conflict during selection of a single bargaining channel for collective bargaining will put a greater burden on employers.
Continuing government-labor dispute over enforcement date of the Trade Union Act
The Ministry of Employment and Labor is maintaining its position that the Trade Union Act entered into force on January 1, 2010, as stated in Article 4 of the Addenda to the Law. However, the Seoul Central District Court and the Jeonju District Court, upon receiving application from the KEC and the taxi drivers’ union in North Jeolla Province to accept their collective bargaining request, ruled in favor of these two groups, declared the enforcement date to be July 1, 2011 in provisional ruling.
Despite these court decisions, the Ministry of Employment and Labor maintains its earlier position that the enforcement date for the Trade Union Act is January 1, 2010, while awaiting final ruling by the higher court.
Intensified inter-labor competition for union consolidation and organization
Ahead of the new National Assembly session, potential exists that the executives of the two umbrella unions will attempt to use revision of the Trade Union Act to restore their alliance. Recently, conflicts over establishment of new unions have been escalating in the port sector as the Korean Confederation of Trade Unions (KCTU) begins to organize new trade unions in this sector, an area where the Federation of Korean Trade Unions (FKTU) has enjoyed a long-standing monopoly in the past years. Meanwhile, a group trying to organize a 3rd umbrella union has composed a “Preparatory Committee for a New Federation of Trade Unions” and stepped up efforts to expand its influence, although without tangible results as yet.