Labor Trends

1. Anxiety concerning labor relations in the finance and health industries continues

As labor and management in the finance industry failed to finalize industry-level central bargaining on 19 October, the Korean Finance Industry Union (KFIU) is considering engaging in a 2nd general strike in November.

The KFIU had requested that every representative from affiliated banks under the employers association in the finance industry participate in this industry-level central bargaining, but this did not happen as management had withdrawn from the employers association and now have their own individual collective bargaining within each workplace.

The KFIU plans to engage in a 2nd general strike in November, but difficulties are expected due to its current situations, such as its weakened position as a result of the failure of the 1st general strike, and the upcoming presidential elections.

The Korean Health and Medical Workers’ Union (KHMW) kicked off its struggle against workplaces with no wage agreements such as Korea University Medical Center, Daejeon Eulji University Hospital, and Wonju Medical Center.



2. 
Civil servants and Subway workers to establish a 3rd union respectively

The Korean United Government Employees’ Union (KUGEU, 12,000 members) plans to establish a 3rd federation of unions (Federation of Public Service Trade Unions) in affiliation with the Regional Public Corporation Trade Union (RPCTU, 9,000 members).

  •  The KUGEU was established by Choong-jae Lee, the former president of the Korean Government Employees’ Union (KGEU) under the Korean Confederation of Trade Unions (KCTU), and who later resigned over a disagreement on civil servant pension reform in May 2015 and withdrew from membership in the KCTU.
  •  The RPCTU was once under the Korean Labor Unions Confederation (KLUC), but was against the merger of the KLUC & the FKTU, and remained outside any upper-level labor organizations.


The Federation of Public Service Trade Unions plans to hold a representatives’ inaugural meeting and ceremony on 12 November, and hopes to unionize civil servants, teachers & education workers, and workers of central public institutions and regional public enterprises.

Seoul Metro also plans to establish a 3rd labor union (the Seoul Metro Justice Trade Union).

※ Labor unions in Seoul Metro Subway

  • ž 1st union: Seoul Subway Labor Union (under the KCTU, 5,600 members)
  • ž 2nd union: Seoul Metro Labor Union (under the FKTU, 2,600 members)


A committee for promotion of the 3rd labor union in Seoul Metro reported its establishment and plans to engage in actions against the integration of Seoul Metro and Seoul Metropolitan Rapid Transit Corporation. A major force in the committee for promotion of the 3rd labor union in Seoul Metro is workers in their 20s and 30s. They are concerned about negative influences such as overlap of personnel if Seoul Metro and Seoul Metropolitan Rapid Transit Corporation integrate.



3.
 Anxiety in labor relations in transportation and logistics continues

As the Korean Railway Workers Union (KRWU) continues to carry out illegal strikes, demanding the withdrawal of the introduction of performance-based wage systems, legal actions such as the filing of accusations and prosecutions between labor and management are on the increase.

The Korea Railroad Corporation (Korail) issued an ultimatum to participants in illegal strikes, warning those that do not return to work by 20 October will face disciplinary action, and filed complaints against 19 union executives for interfering with business. The KRWU has intensified its legal disputes*, created a public fear of the danger of railway safety due to prolonged strikes**, and pushed the government to participate in discussions by making use of the opposition parties in the National Assembly.

* The KRWU filed complaints of abuse of authority with progressive civic groups within the Seoul Central District Prosecutors’ Office (19 October) against Ho-in Kang, the Minister of Land, Infrastructure & Transport

** Lawmakers from the Minjoo Party, who are in the Land, Infrastructure & Transport Committee in the National Assembly, held a press conference on 19 October and urged the government to participate in discussions to settle the KRWU strikes

Labor and management in the Busan Transportation Corporation (BTC) resumed collective bargaining after suspension of the Busan Subway Labor Union’s strikes (27~30 September), but there is a difference of opinion on wage increases and introduction of performance-based wage systems.

[Table 1] Demands of the Busan Subway Labor Union

 

– 4.4% increase in total wage

– Introduction of performance-based wage systems through labor and management agreement

– Include bonuses and household allowances in ordinary wage

– No reflection of performance evaluations in wage amounts

On 19 October, the Cargo Truckers Solidarity decided to stop its collective refusal to transport due to burdens accrued from its prolonged refusal to do so and its weakened position as a result of the government’s strong response.

The government announced its plans regarding the withdrawal of the Cargo Truckers Solidarity’s collective refusal to transport on 19 October, and reaffirmed its decision to reject excessive demands from the Cargo Truckers Solidarity.

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