{"id":2200551,"date":"2023-03-28T18:36:26","date_gmt":"2023-03-28T09:36:26","guid":{"rendered":"https:\/\/koreapro.org\/?p=2200551"},"modified":"2023-04-05T16:07:49","modified_gmt":"2023-04-05T07:07:49","slug":"yoons-reforms-set-south-korean-government-and-labor-unions-on-collision-course","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2023\/03\/yoons-reforms-set-south-korean-government-and-labor-unions-on-collision-course\/","title":{"rendered":"Yoon\u2019s reforms set South Korean government and labor unions on collision course"},"content":{"rendered":"

South Korean organized labor has had a difficult time during President Yoon Suk-yeol’s first year in office, and it appears that further challenges lie ahead as the administration gears up to tackle labor reforms, a move that could improve unions\u2019 financial transparency but which risks infringing on workers\u2019 right to organize.<\/span><\/p>\n

In December, the Korea Confederation of Trade Unions (KCTU), the more militant of the country\u2019s two most prominent umbrella labor union groups, faced a blow when the government refused to extend a minimum pay system for truckers and imposed an <\/span>unprecedented return-to-work order<\/span><\/a> with severe penalties in the case of noncompliance.<\/span><\/p>\n

Yoon\u2019s hardline approach <\/span>increased his polling numbers<\/span><\/a> as the public grew frustrated with the strikers over supply chain disruptions and <\/span>a fuel shortage that affected over 100 gas stations<\/span><\/a>.<\/span><\/p>\n

The KCTU has since become the target of a law-enforcement campaign launched in January to <\/span>investigate<\/span><\/a> possible violations of the country\u2019s National Security Law.<\/span><\/p>\n

The NIS has <\/span>accused<\/span><\/a> former and current KCTU executives of engaging in pro-North activities, meeting with DPRK officials in third countries and engaging in pro-North activities at home. The KCTU has denied any connection with North Korea.\u00a0<\/span><\/p>\n

Counterintelligence authorities also <\/span>scuffled<\/span><\/a> with KCTU members on Feb. 23 at the union’s provincial headquarters in Changwon. Two officials from the Korean Metal Workers’ Union (KMWU) \u2014 a labor union that falls under the KCTU \u2014 and its subcontracting branch for Daewoo Shipbuilding were <\/span>arrested<\/span><\/a> during the execution of a search warrant.<\/span><\/p>\n

More recently, Yoon attacked the KCTU and Federation of Korea Trade Union (FKTU) for <\/span>alleged malfeasance<\/span><\/a> at construction sites. Union officials are accused of coercing construction companies not to hire non-union members and intimidating them into giving bribes. Companies that refuse to cede to such demands allegedly face retaliation from union workers through work slowdowns and other on-site disruptions.<\/span><\/p>\n

COORDINATED MOVEMENT<\/b><\/p>\n

Meanwhile, the South Korean government is moving quickly to deliver on the <\/span>labor reforms<\/span><\/a> Yoon promised in his New Year’s Address. In the speech, the president identified labor as one of three areas, along with education and pensions, that has long been plagued by \u201cvested interests\u201d and \u201crent-seeking.\u201d<\/span><\/p>\n

In keeping with the rhetoric he adopted amid the trucker strikes, Yoon emphasized that reform must be rooted in the rule of law and that imposing the latter can help shield against the social and economic costs of labor-management conflict.<\/span><\/p>\n

The nature of the Yoon administration\u2019s labor reforms became clearer following <\/span>consultations<\/span><\/a> regarding unreasonable labor practices between Employment and Labour Minister Lee Jeong-sik and a panel of subject matter advisers.\u00a0<\/span><\/p>\n

As part of its reform package, the government <\/span>launched<\/span><\/a> the Labor-Management Irregularities Center on Jan. 26. The online portal had received 51 submissions related to labor union \u201cirregularities\u201d by the end of February. Submissions highlighted workers’ fear of retaliation if they questioned how union funds were spent. There was also a case where a union executive was unfairly dismissed for challenging the findings of a union’s audit.<\/span><\/p>\n

At the same time, other members were accused of defamation and threatened with civil and criminal prosecution when they raised similar suspicions.<\/span><\/p>\n

The complaints identified <\/span>coercive mobilization<\/span><\/a> as another problem area. One case suggests members have been made to rally for causes unrelated to their work and that serve the political interests of the union. Failure to turn up for scheduled demonstrations or rallies allegedly has serious ramifications on members\u2019 livelihoods, with threats of expulsion or exclusion from future work opportunities.<\/span><\/p>\n

The government\u2019s impending reforms will likely address trade unions’ financial opaqueness by establishing disclosure requirements guidelines and a system like <\/span>DART<\/span><\/a> sometime in the <\/span>third quarter of this year<\/span><\/a>.<\/span><\/p>\n

The government will consider providing incentives for unions that voluntarily submit their disclosures. However, the government proposes making disclosure obligatory if a member requests it or if members\u2019 rights are alleged to have been violated due to embezzlement or other breaches of trust. But if unions resist disclosing their financial statements, the government will likely consider imposing sanctions.<\/span><\/p>\n

The government will also pursue higher auditing standards by standardizing professional requirements for labor union auditors and outlawing concurrent appointments. For instance, nothing in existing law prohibits a union executive from holding a concurrent appointment as their union\u2019s auditor. Similarly, labor union auditors are not required to have special certifications in the field of public accounting.<\/span><\/p>\n

Therefore, Employment and Labour Minister Lee Jeong-sik has pledged to secure auditors\u2019 independence by <\/span>expediting<\/span><\/a> an amendment to the enforcement decree of the Trade Union Act by the end of this month. It will standardize professional requirements for labor union auditors and outlaw concurrent appointments.<\/span><\/p>\n

\"\"

Korean Metal Workers\u2019 Union members protest against the Yoon administration\u2019s labor policies, Feb. 16, 2023 | Image: Facebook<\/a><\/em><\/p><\/div>\n

UNIONS\u2019 RESPONSE<\/b><\/p>\n

The major labor unions and their subsidiaries have <\/span>criticized<\/span><\/a> the outlined reforms as an attack on their autonomy. That unions have routinely opposed conservative administrations also feeds the perception that the Yoon administration is deliberately targeting political opponents.<\/span><\/p>\n

But exposing unions\u2019 murky finances and potential corruption does no disservice to the administration. In reality, union expenditures in the ROK are often shrouded in mystery. Dues-paying members and the public, whose taxes subsidized union activities to the tune of $115.6 million (<\/span>150 billion won<\/span><\/a>) over the past five years, <\/span>have no insight<\/span><\/a> into how unions manage their books or what their contributions are funding.<\/span><\/p>\n

Trade unions should not view fulfilling minimum disclosure requirements as a burden if they have nothing to hide. Compliance with such measures should strengthen members’ democratic rights and the public\u2019s trust in unions.<\/span><\/p>\n

However, the proposed plans to increase criminal penalties for subjective offenses concern unions and their organizing activities. Efforts to penalize unions for obstructing members from leaving a union and deeming other actions as illegal during collective bargaining are particularly concerning.<\/span><\/p>\n

With the ruling party having now agreed to the proposed reforms in consultations with the government, the confrontational nature of labor-government relations shows no sign of resolution. The threat of disruption to business activity and more production losses looms heavy on the horizon.<\/span><\/p>\n

The Korean Metal Workers Union (KMWU), which has 180,000 members nationwide, <\/span>plans to strike<\/span><\/a> against the reforms and in favor of a minimum wage increase. KMWU is strong in South Korea’s shipbuilding, automotive and steelmaking sectors, with branches at Kia, SsangYong, GM, Hyundai and Mando and shipbuilder Hyundai Heavy Industries.<\/span><\/p>\n

KMWU plans to hold its strike on April 19, involving 10,000 members. It will be followed by a full-scale general strike in May and a second strike involving the broader KCTU in July.<\/span><\/p>\n

As President Yoon Suk-yeol\u2019s poll numbers continue to reflect his unpopularity and unions <\/span>form partnerships with opposition parties<\/span><\/a>, labor-government relations will likely deteriorate further.<\/span><\/p>\n

Edited by John Lee<\/span><\/i><\/p>\n

Business & Economy<\/span><\/a>Domestic Politics<\/span><\/a><\/div>","protected":false},"excerpt":{"rendered":"

South Korean organized labor has had a difficult time during President Yoon Suk-yeol’s first year in office, and it appears that further challenges lie ahead as the administration gears up to tackle labor reforms, a move that could improve unions\u2019 financial transparency but which risks infringing on workers\u2019 right to organize. In December, the Korea […]<\/p>\n","protected":false},"author":10407,"featured_media":2200552,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[24,27],"class_list":["post-2200551","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-business-economy","tag-domestic-politics"],"yoast_head":"\nYoon\u2019s reforms set South Korean government and labor unions on collision course - KOREA PRO<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/koreapro.org\/2023\/03\/yoons-reforms-set-south-korean-government-and-labor-unions-on-collision-course\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Yoon\u2019s reforms set South Korean government and labor unions on collision course - KOREA PRO\" \/>\n<meta property=\"og:description\" content=\"South Korean organized labor has had a difficult time during President Yoon Suk-yeol’s first year in office, and it appears that further challenges lie ahead as the administration gears up to tackle labor reforms, a move that could improve unions\u2019 financial transparency but which risks infringing on workers\u2019 right to organize. 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