Korea's Labor and Labor Unions

Gasgoo From Investkorea.com

Positive changes in labor-management relations in Korea

Rational relations and cooperation among the labor-management-government have been taking root.

Recently, labor's understanding and attitude toward the labor movement has been changed in a positive way. Inside the labor circles, there has been increasing criticism against their union's aggressive struggle, with a thought that their movement should be based on popular support. In line with this movement, the businesses, in an effort to remove the distrust and establish healthy relations based on mutual trust, declared their commitment to transparent and ethical business operations. Businesses involved include Shinsegye, Kookmin Bank, Samsung Insurance, POSCO, Samsung SDI, Dongbu Steel, Hankuk Electric Glass, Yuhan Kimberly, and LG Philips LCD etc.)

A more rational labor-management negotiation process has been increasingly expanded.

Early settlement of disputes based on dialogue and compromise has been taking root, against the background of negative public sentiment against the illegal strikes and the economic downturn. Thanks to such efforts, the loss of working days has been on the decline for three consecutive years (Loss of working days: 1,580 days in '02 1,299 in '03 1,199 in '04).

Law-abiding practices are becoming more apparent.

Illegal practices in the course of negotiation are disappearing rapidly, with fewer numbers of people arrested. The tense relations between the labor and management have been eased. (Number of people taken into custody : 221 in '01 200 in '02 165 in '03 71 in '04)

Stabilized wages.

Wages have been stabilized downward, with a narrowing gap between the jobs. The average wage raise, as a result of negotiation (based on gross), was 5.5%, down 1.2% from a year ago, sustaining the downward trend. (Wage hike trends: 6.7% in '02 6.4% in '03 5.2% in '04)

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