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SESSION ONE: UNDERSTANDING
GLOBALISATION
Report – Session 1: Korea
19:00-22:00, 9. February 1999
conference room in KLSI
1. We discussed the recent economic and social changes in Korea as
follows.
Social transition to so called "the
International Monetary Fund-managing society"
after the IMF’s bailout for Korea.
Acceleration of industrial restructuring: in 1998 we suffered from structural adjustment in banking sector and in 1999
structural adjustment in public sector and major chaebols (Korean conglomerates) is
expected
Transition from the society of "Rapid
Growth/full employment" to that of "Minus Growth/high unemployment": in 1998 we experienced the economic recession and main economic indexes are
as follows: 7% of unemployment rate(2% of 1997), -5% of economic growth rate(5.5% of
1997), -28% of rate of investment reduction
Institutional introduction of flexibility of labor
market: in 1998, lay-off system and workers
dispatching system were legislated. It was one of the main demands from the International
Monetary Fund.
Political democratization: in the presidential election of December 1997, Kim Dae-jung was
elected as new president and in February 1998 the new government was established. This was
historically the first power alternation by opposition party.
Trade union movement in difficulty and confusion: the economic crisis has worsened the position and situation of trade union
movement. The union density declined to less than 11%. As it has exposed the inability to
combine the mass mobilization with the strategy of engagement and negotiation, trade union
movement is being at a loss.
2. And then we discussed the changes of workplaces
and plants ...
Increasing labor intensity:
reducing spare time due to the reduction of cycle time, increasing job burden (for example
in Daewoo Motors, 35 cars per a hour in 1995, 42 cars per a hour in 1997).
Manpower Adjustment pro capital: Concerning the layoff problem, the atypical workers are
prior to regular workers because they are not organized by union to protect them.
Increasing fixed-term contract workers and temporary workers. Increasing demand of
multi-skill from management. Structural adjustment at subsidiary-level
Antagonistic attitude and
strategy of the management: while it had been inclined to accept the
demands from union in the past, nowadays the management is implementing the policy against
union such as unilateral decision on wage cut and redundancy. Increasing outsourcing and
subcontract. Strengthening employers' attack against union and workers in the name of
competitiveness.
Deterioration of working condition
and wage: due to the reduction of
production, regular workers as well as irregular workers are suffering from the wage
decrease and unstable employment. Deepening division and competition of workers after the
economic crisis.
Wrecking relationship between
workers and inactive workplace: workers have less trust in unions and
colleagues in their plants and workplaces due to the above reason. Also, they have felt
awkward each other and their lives in workplaces have become inactive and unpleasant.
Increase of voluntary retirement due to the high retirement pay. Although the fixed-term
contract workers can be allowed to join union, the existing members are reluctant to
accept them within union. Difficult and delayed procedure of the construction of
industrial union in broadcasting sector due to the enterprise-level unions' organizational
selfishness.
3. Finally, we discussed the questions on overseas
situation...
How powerful is social and political
influence of union movement?
What is the unemployment rate? What is the social protection for the
unemployed?
What is the daily activity of industrial union at local or plant
level?
What extent do TNCs control or dominate local economy?
What union system? Enterprise-level or industrial-level?
Does your labor law include the article on lay-off? If it does, when
was it legislated?
How is the industrial relation or labor practices in Korean
MNCs’ company overseas?
Concerning Session 2
- When: 19:00 – 21:00 4th
March 1999
- Where: Conference room in
KLSI
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