① Labor expresses its stance against labor reform policies of the government and ruling party
The Federation of Korean Trade Unions (FKTU) gave notification of its intention to carry out a struggle on 16 September to block the 6 bills revising labor laws including the Labor Standards Act. The Korean Confederation of Trade Unions (KCTU) plans to hold a downtown rally in protest of the structural reform of the labor market and carry out a general strike in November and December.
[Table 1] KCTU Strike Plans against the Government
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24 October: Nationwide non-regular workers rally 14 November: General rally November ~December: 3rd KCTU political general strike |
[Table 2] Saenuri Party’s Labor Law Revision Bills: Main Features
|
Bill |
Details |
|
Labor Standards Act |
▲Clarify the concept of ordinary wage, define money and valuables excluded from calculation of ordinary wage in the Enforcement Decree to the Labor Standards Act ▲Include holiday work in extended work hours, implement in 4 stages by company size, allow special extended work on holidays (up to 8 hours per week) upon agreement between labor and management ▲Adjust the number of industries exempt from working hour regulations (26 industries → 10 industries) |
|
Employment Insurance Act |
▲Strengthen guarantee of unemployment benefits – Expand coverage (50% of average wage before layoff → 60%), extend payment period (90 days to 240 days → 120 days to 270 days) |
|
Industrial Accident Compensation Insurance Act |
▲Introduce criteria for acknowledging commuting accidents as work-related ones |
|
Act on the Protection, Etc. of Fixed-Term and Part-Time Workers |
▲Limit the use of fixed-term workers in core jobs related to safety and protection of life ▲Extend employment period for fixed-term workers desiring to stay (upon request by those at age 35 or older) ▲Improve wage systems towards non-disruptive implementation of retirement age extension |
|
Act on the Protection, Etc. of Temporary Agency Workers |
▲Limit the use of dispatched workers in core jobs related to safety and protection of life ▲Allow the use of dispatched workers in high paying professional jobs including molding, welding, and casting |
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Act on the Collection, Etc. of Premiums for Employment Insurance and Industrial Accident Compensation Insurance |
▲Set a single rate for insurance premiums regardless of business type in relation to the introduction of criteria for acknowledging commuting accidents as work-related ones |
② Tension in labor relations grows due to joint struggles by shipbuilding industry unions
The Federation of Shipbuilding Industry Unions* under the KMWU (Korean Metal Workers’ Union) held its 1st strike on 9 September demanding wage hikes/employment stability followed by a 2nd strike on the same issues on 17 September.
* Member unions of the Federation of Shipbuilding Industry Unions: Hyundai Samho Heavy Industries union, Hanjin Heavy Industries & Construction union, Sungdong Shipbuilding & Marine Engineering union, STX Shipbuilding union, Shina SB union (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 Federation of Shipbuilding Industry Unions gave notification of its intention to hold a large-scale strike, but the size was much smaller than planned due to the passivity of field union members. Approximately 2,000 union members participated in the 1st strike and 1,000 in the 2nd strike.
The Federation of Shipbuilding Industry Unions and Hyundai Motor Group Union gave notification of its intention to hold a joint rally on 17 September, but the Federation of Shipbuilding Industry Unions held the rally by itself since Hyundai Motor Group Union was involved in intensive collective bargaining and also due to the rain. The Federation of Shipbuilding Industry Unions plans to continue its joint struggle, but strike intensity is expected to weaken as its affiliated unions have not been actively participating in the strikes and Samsung Heavy Industries and its Workers’ Council concluded a wage agreement*.
* Samsung Heavy Industries and Samsung Heavy Industries Workers’ Council concluded the 2015 wage agreement on 10 September to increase basic salary by 0.5% and bonuses KRW 1.5 million.
③ Hyundai Motor wraps up controversy over in-house subcontracted workers
Labor and management at Hyundai Motor have agreed to engage in special negotiations regarding in-house subcontracted workers through dialogue between Hyundai Motor, representatives of subcontracted firms, KMWU, KMWU’s Hyundai Motor chapter, and in-house subcontracted workers chapter of Hyundai Motor (Ulsan plant).
In August 2014, labor and management at Hyundai Motor agreed upon special employment of 4,000 subcontracted workers at the Jeonju and Asan plants (by the end of 2015) and this time, they agreed on employing 2,000 subcontracted workers in the Ulsan plant by the end of 2015.
[Table 3] Agreement on In-house Subcontract Workers at Hyundai Motor (Ulsan plant)
|
Issue |
Details |
|
Special Employment |
▲ Hire 2,000 additional workers
▲ Recognize a maximum 8 years of service if the number of years employed by subcontracted firms is 15 years or longer ▲ Preferential employment of in-house subcontract workers at a certain percentage beginning in 2018 when employing technical workers |
|
Drop lawsuits |
▲ Withdrawal of current civil and criminal lawsuits by labor and management |
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Dismissed workers |
▲ Re-employment of dismissed workers (Acknowledge dismissed period as work experience when specially employed) |
Meanwhile, this Hyundai Motor agreement is expected to affect resumption of special consultation on in-house subcontracted workers at Kia Motors. Labor and management at Kia Motors have engaged in consultations between 4 bodies (Kia Motors, representatives of in-house subcontracted firms, KMWU Kia Motors chapter, and in-house subcontracted workers chapter of Kia Motors) regarding special employment of in-house subcontracted workers, but consultation was interrupted by a sit-down strike of union members from in-house subcontracted workers branch of Kia Motors in June 2015.