1. Finance and public agency workers went on strike in protest against the guidelines on performance-based wage systems and the government’s intervention in labor-management issues
Finance and public unions and liberal civic groups held a press conference on 21 September where they stated “If the government does not scrap its plans to implement performance-based wage systems, we will begin all-out strikes.” These unions and the opposition parties also urged the Minister of Employment and Labor to step down.
Affiliates of the Federation of Korean Trade Unions (Federation of Korean Public Industry Trade Unions, Korean Financial Industry Union and Federation of Korean Public Trade Unions) and of the Korea Confederation of Trade Unions (Korean Public & Social Services and Transportation Workers Unions and Korean Health & Medical Workers Unions) continued their strikes from 22 to 29 September.
2. Labor to protest against the Government and National Assembly
The Federation of Korean Trade Unions (FKTU) had a meeting of its Central Executive Council on 21 September and concluded its action plans for the 2nd half of this year.
[ Table 1 ] FKTU Action Plans for 2nd Half of 2016
|
Dates |
Plans |
|
26 Sept. ~ 14 Oct. (Parliamentary audit) |
▴ Sit-in protest by FKTU leadership (tent in front of the Korea Development Bank office in Yeouido, Seoul) ▴ Solo protest by FKTU executives and directors (in front of the National Assembly) |
|
26 October |
▴ Protest rally against the Ministry of Employment and Labor by FKTU headquarters and regional branches |
|
19 November |
▴ FKTU National Workers Rally at Seoul Plaza |
Once the parliamentary audit is finished, the FKTU is likely to focus on its next leadership elections, which are scheduled for January 2017.
Meanwhile, on 21 September, the Korea Confederation of Trade Unions (KCTU) held a meeting with its affiliate industrial unions and discussed its plans for anti-government protests – a protest by public unions in September, a nationwide rally in October, and a People’s rally in November. Ahead of the presidential elections next year, the KCTU will actively work to strengthen anti-government sentiment among the public.
[ Table 2 ] KCTU Action Plans
|
Dates |
Plans |
|
30 September |
▴ Regional protest against labor reform and performance-based HR systems ※ With civic groups from each region |
|
1 October |
▴ Nationwide rally demanding the scrapping of labor reform and performance-based HR systems, improvements to social services and construction of a safer society
※ Resolution to hold a People’s rally in November |
|
6 October |
▴ Simultaneous rallies and strikes against labor reform, performance-based HR systems and corporate restructuring across the nation
※ Regional protests |
|
8 October |
▴ Rally demanding nullification of administrative guidelines, scrapping of labor reforms and performance-based HR systems, and improvement of social services ※ Joint rally with the FKTU |
3. Major Korean automakers face industrial action
The Hyundai Motor union, a branch of the Korean Metal Workers Union, staged a partial strike on 21~23 September ahead of resuming collective bargaining. In negotiations on 23 September, the Hyundai Motor union asked for an additional wage increase, which Hyundai deems as excessive. On 26 August, the union quashed the tentative agreement on a wage increase and then demanded a higher increase on 7 September.
The union at Renault Samsung Motors walked away from the table on 8 September and resumed negotiations with management at the end of September. However, as there is a huge gap in the views between union and management on the wage increase, negotiations are not expected to be finalized.
[ Table 3 ] Tentative Wage Bargaining Agreement at Hyundai Motor & Renault Samsung Motors
|
Hyundai Motor (Tentative agreement reached on 24 August) |
▴ Monthly salary increase of KRW 58,000 (US$ 52.3)
(including seniority-related wage raise) ▴ Performance-based bonus and incentive of 350% + KRW 3.3 million (US$ 2,976) ▴ 10 Hyundai Motor shares and KRW 200,000 (US$ 180) worth of vouchers (which can be used in traditional markets) to be given to every worker |
|
Renault Samsung Motors (Tentative agreement reached on 6 September) |
▴ Monthly salary increase of KRW 31,200 (US$ 28.15), or 1.5%p
▴ Performance-based bonus and incentive of 150% + KRW 7.5 million (US$ 6,766) ▴ Standing provision in past agreements to grant priority to the children of long-term employees in terms of employment to be scrapped |