Labor Trends

① Labor continues action against labor market reform

 

As the Federation of Korean Trade Unions (FKTU) has expressed the possibility of breaking the Tripartite Agreement, FKTU-affiliated unions which oppose the Agreement plan to continue taking labor action against labor market reform.

The FKTU has insisted that the Saenuri Party’s proposed bills on 5 labor reforms violate the Tripartite Agreement and gave notification of its intention to block those bills. The president of the FKTU, Mr. Dong-man Kim, also stressed on 7 October the need to go on strike if the government and the ruling party unilaterally proceed with such labor reform. The Federation of Korean Metal Workers Trade Unions (FKMTU), the Federation of Korean Chemical Workers Unions (FKCWU), and the Federation of Korean Public Trade Unions (FKPTU) released a joint statement intending to break the Tripartite Agreement and urged the FKTU to hold a strike against the government.

Meanwhile, the Korean Confederation of Trade Unions (KCTU) also plans to continue its efforts against labor market reform and politicize issues surrounding its six demands through a general rally on 14 November.

 

[Table 1] 6 Demands from the KCTU

 1. Enhance social responsibility of business on conglomerates

2. Set upper limit of 1,800 actual working hours per year

3. Set KRW 10,000 per hour as minimum wage

4. Employ regular workers for constant and continuous work

5. Protect basic labor rights

6. Strengthen the social safety net

 

 

② Public institution unions affiliated with the KCTU continue to take action against the government regarding introduction of wage peak systems

Public institution unions affiliated with the Korean Public Service and Transport Workers’ Union, under the KCTU, held a downtown rally in Seoul against the government on 15 October to oppose introduction of wage peak systems and normalization of public institutions.

The rally was carried out by large public institution unions such as those for the National Health Insurance Corporation, the National Pension Service, and Korail, where wage peak systems have not yet been introduced.

 

[Table 2] Number of Participants in 15 October Rally by Major Public Institution Unions

 

National Health Insurance Corporation National Pension Service Korea Gas Corporation Korail
Number of union members Approximately 1,000 Approximately 1,500 Approximately 500

Approximately 1,000

 

In a situation where introduction of wage peak systems is inevitable, the purposes for action by these unions seem to raise the age when the wage peak system kicks in and decrease the wage reductions.

Meanwhile, although the Korean Public Service and Transport Workers’ Union plans to continue its strike against the government, uniting the membership for strikes seems to be difficult due to the lack of interest by its affiliated unions. The Korean Public Service and Transport Workers’ Union had planned to hold a strike on 15 October, but its affiliated unions simply participated in a downtown rally during its hours for union member education. The Union sought to see 20,000 participants in a strike, but ultimately only 5,000 union members participated, not in a strike, but in a rally.

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