Labor Trends

① FKTU decides to return to the Tripartite Committee

The Federation of Korean Trade Unions (FKTU) held a central executive committee meeting on 26 August and decided to come back to the Special Committee on Labor Market Structure Improvement under the Economic Social Development Commission (ESDC). It has been 5 months since the FKTU walked out of discussions on structural reform of the labor market in April.

The FKTU has delegated decisions of related issues to its president and other leaders to such as when to return to the Tripartite Committee. The central executive committee will be called upon if important issues arise in the Tripartite Committee discussions.

Once a final agreement is made during the negotiations of the Tripartite Committee, it will be discussed and approved by a decision-making body within the FKTU. The decision-making body which will be appointed among the central executive committee, general meetings, regular conventions, and meetings of representatives of industrial unions, seems to have influences on the final agreement on labor market reform.

The FKTU is determined not to accept certain decisions regarding general dismissal or unfavorable changes of employment rules although it has decided to return to the Tripartite Committee. However, the FKTU will discuss the issues in its central executive committee when the issues become more controversial once again. The FKTU position is that the issues still should be dealt by the central executive committee even if the issues become long-term tasks.

② KCTU plans more disruptive strikes in the second half of the year

The Korean Confederation of Trade Unions (KCTU) held a meeting with industrial union representatives on 18 August and discussed strike plans for the second half of the year. Its apparent intention is to focus on actions against government plans for structural reform of the labor market in August followed by actions against large companies in September.

Through the parliamentary inspection periods* in September and October, the KCTU plans to involve itself in such issues as large companies’ internal reserves and push for passage of the (tentatively named) Special Act for Restitution of Internal Reserves in cooperation with opposition parties.
* The parliamentary inspection periods for this year will be from 10 September to 23 September and from 1 October to 8 October.

Meanwhile, the KCTU plans to hold a large downtown rally on 14 November to oppose structural reform of the labor market as well as demand reform of large companies, and plans to hold a general strike in the middle or at the end of November. Rallies held by individual workplace representatives and worksite visits by KCTU executives are also planned to garner more support for this general strike, from the beginning of October.

[Table 1] KCTU Plans in the Second Half of the Year

③ Labor relations increasingly tense between management and KMWU-affiliated unions under the KCTU

The Kumho Tire branch of the Korean Metal Workers’ Union (KMWU) has carried out all-out strikes since 17 August to demand a basic pay increase of 8.3%, a performance-based bonus, and to express its opposition to introduction of a wage peak system. Relations between labor and management at Kumho Tire have been increasingly tense due to the difference over wage peak system.

[Table 2] Major Wage /Collective Bargaining Issues at Kumho Tire

Meanwhile, the Federation of Shipbuilding Industry Unions* under the KMWU has decided to hold solidarity strikes on 9 September to demand employment stability and other issues.

[Table 3] Major Strike Plans: Federation of Shipbuilding Industry Unions

* Member unions of the Federation of Shipbuilding Industry Unions: Hyundai Samho Heavy Industries branch, Hanjin Heavy Industries & Construction branch, Sungdong Shipbuilding & Marine Engineering branch, STX Shipbuilding branch, Shina SB branch (these are under the KMWU) / Daewoo Shipbuilding & Marine Engineering Union (under direct control of the KCTU), Hyundai Heavy Industries Union, Hyundai Mipo Dockyard Union, and Samsung Heavy Industries Workers’ Council (these are not under the KCTU).

The solidarity strikes by the Federation of Shipbuilding Industry Unions are expected to be held mainly by the Hyundai Heavy Industries Union, and are not expected to have widespread participation.

Meanwhile, the KMWU held a central executive committee meeting on 18 August and decided to maintain the current status of Samsung Electronics Service branch for another year. The KMWU had planned to give direct control to regional branches under the KMWU’s regional unions in order to increase KMWU influence on Samsung Electronics Service branch. However, in light of opposition from the said branch, these plans have been postponed for a year.