General understanding on Korean industrial relations August 2005 reported by Joung, Kyoung Eun

Korea has... Been located in the end of north-east Asia. Got about 22-31°C in summer and minus 9-0°C in winter in temperature. Got about 45 m. in population. Capital ; Seoul Been divided into two countries after liberation. Quickly industrialised during 70-80s. And, main staples are cars, mobile phones, semiconductors and so on. has the highest broadband internet penetration rate in the world. Financial crisis has occurred at the end of 1997.

Economic Background 1 Economy in 2005 would be recession –GDP growth in ; over 5% –GDP growth in 2005 ; 4% –Inflation in 2005 ; 3% Unemployment rate ; 3% Table 1. GDP growth and inflation since financial crisis GDP growth Inflation Pay rates

Economic Background 2 Pay distribution has been worsen –Pay distribution rates flows ; 61.9% in 1998, 59.7% in 2003 –Labours/jobs flows ; 61.7% in 1998, 65.1% in 2003 –Gini Coefficient ; in 1997, 0.3 since 1998 Table 2. Pay distribution flows and labours/jobs flows, Gini Coefficient Pay distribution labours/jobs Gini Coefficient

Economic Background 3 Actual Pay increase rates is under Productivity –Actual Pay increase rates ; 2.2% in 2000, 3.6% in 2003 –Productivity ; 9.2% in 2000, 8.2% in 2003 –Value added ; 8.6% in 2000, 9.0% in 2003 Table 3. Productivity and Actual pay increase rates flows Productivity Value Added Actual Pay rates

Political Background Constitutional democracy Been ruled by military dictatorship from 60-80s. Democratized since 1987 following great mobilization of people. President serves only once for five year by direct election. Anti socialist law still exists, which was the main method to repress student movement and labour movement. Mainly conservative 2 parties ruling system, the biggest opposite party(ultra conservative) ruled by Labour party(KDLP) has been founded since 2000 and it finally has got 10 seats of the parliament in general election of KDLP is strongly supported by KCTU.

Trade Unions union density ; 12% –its peak point is over 19% in 1991 and after that it goes down members ; about 1,700,000 basic structure ; enterprise based union system 2 national centres ; KCTU and FKTU 45 industrial union(federation) and over 1,800 enterprise union

KCTU has been built in 1995 members ; 680,000 in affiliates and 15 regional branches decision-making structure ; annual conference in January, general conference in a half of year, executive committee meeting every months. represents autonomous, democratic and militant trade unionism. Lee, Su-ho, new president has been elected in the annual conference in 2004 and his strategy in industrial relations is to build new social dialogue system.

KCTU’s objectives in 2005 are to abolish to discrimination against irregular workers and their job security. to defend the government attempts to retrogressively revise labour laws and to set equal industrial relationship. to change its structure to industry based union system and to strengthen its capacity. to develop its solidarity with civil movements on anti-us, anti- globalisaion, anti-new liberalism. to evolve to reform social safety nets. to stimulate reunification movement and relation with KDLP. to strengthen its representation in relation with the government and employers and to begin to make its long term strategy.

Breakdown of tripartism Tripartite committee has started since the early 1999 to solve economic and social problems which are prospected their expansion after financial crisis. After that, the first social consensus was made on employment and industrial policy in fev, 1999 that means adoption of procedure of redundancy and lay-off by the trade union. The consensus was rejected by the annual conference of KCTU and under that result all leadership of KCTU was resigned. Government accepted its resolution on redundancy policy very quickly but never legislated on labour law which expands trade union rights. Besides, tripartite committee was go-stop, go-stop repeatedly. And finally KCTU has been decided its non-participation to tripartite committee. FKTU has been also decided its non-participation in 2005 following the industrial relationship has been worsen.

Threats to TU increase of scale of irregular workers and of discrimination on pay and social securities they have been taken new liberal government is trying to retrogressively revise the labour law which is understood as deregulation of the procedure on redundancy and expansion of irregular workers. Although KCTU’s basic strategy is to change its affiliates to industrial union system, collective bargaining in industrial level has its vulnerability and difficulties for settlement. trade unionists in grass-root level are weaken and the fact that TU movement highly depends on large sized enterprise union.

Resolution Economy in 2005 is going to recession. -Politics are ruled by two major conservative parties. -Industrial relationship is unstable following the government’s attempt to retrogressively revise on labour law and breakdown of tripartism.