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Labor Situation and Union Education in Korea

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[Session1] [Session 2] [Session 3] [Session 4] [Session 5] [Session 6]


1. General Situation

 

2. Trends of Modern History in Korea

 

3. Labor Market

3.1. Recent Employment Index

    [Table1] Trends of Employment Index (unit: thousand, %)

    1997

    1998

    Jan. 1999

    Population over 15 age

    Labor force(L/F)

    L/F participation rate

    Employed

    Unemployed

    Non-labor force

    Unemployment rate

    34,736(1.6)

    21,604(2.0)

    62.2

    21,048(1.4)

    556

    13,132(1.1)

    2.6

    35,243(1.5)

    21,390(-1.0)

    60.7

    19,926(-5.3)

    1,463

    13,853(5.5)

    6.8

    35,450(1.2)

    20,671(0.1)

    58.4

    18,909(-4.1)

    1,762

    14,779(2.7)

    8.5

     

     

     

     

     

     

     

     

     

    * Source: Korea Labor Institute

3.2 Mass Unemployment and Employment Instability

  • Soar of unemployment rate and unstable employment under IMF bail-out system,
  • It is estimated that mass unemployment will continue for a long time
  • Decrease of labor force,
  • Decrease of labor force participation rate.
  • Decrease of employees by 5.3% compared to 1997,
  • Increase of non-labor force
  • Increase of the discouraged unemployed

3.3 Structural Change of Labor Market

1997.4/4

1998.4/4

Fluctuation

Total

21,070(0.0)

19,846

-1,224(-5.8)

Self-employed

Regular workers

Temporary workers

Daily workers

7,791(-6.7)

6,928(-1.0)

4,423(1.5)

1,929(6.1)

7,675

6,195

4,018

19,58

-116(-1.5)

-733(10.6)

-405(-9.2)

29(1.5)

 

 

 

 

 

 

[Table2] Treads of Employees by position (unit: thousand, %)

*Source: Korea Labor Institute

  • Number of wage earners is decreasing
  • Because proportion of regular workers is decreasing, employment becomes more unstable(it was reduced from 52.5% to 50.9%)
  • Soar of youth unemployment, relative increase of women unemployment

3.4 Government’s Policy on Economic Restructuring

  • To promote labor market flexibility: legislation of lay-off and workers dispatch system
  • To implement structural adjustment programs in financial sector and public sector
  • To Compel companies to structural adjustment programs
  • Inactive unemployment policy

 

4. Wage and Labor Condition

4.1 Trends of Wage

[Table 3] Trends of Wage-Related Index

1996

1997

1998

Total amount of wage (thousand Won / month)

Nominal wage fluctuation rate(%)

Consumer price fluctuation rate(%)

Real wage fluctuation change rate(%)

1,368

11.9

4.9

6.7

1,463

7.0

4.5

2.4

1,427

-2.5

7.5

-9.3

 

 

 

 

 

*Source: Ministry of Labor

  • In 1998, nominal wage was reduced by - 2.5% and real wage by -9.3%.
  • Main reasons of wage decrease: economic crisis, reduction of labor demand, wage freeze or wage cut at the expense of employment
  • Although fixed sum of wage wasn't reduced, extra pay and beneficiaries decreased.
  • Manufacturing sector -3.1%, construction industry -7.5%

 

4.2 Trends of Working Time and Industrial Injury

  • In 1998, average monthly working hour is 199.2 hours. Weekly working hour is 45.9 hours. Regular working hour is 179.1 hours and overtime is 20.1 hours. Working days per month is 24 day.
  • In manufacturing sector, monthly working hour is 200.0 hours and weekly working hours is 46.1 hours.
  • In 1998, the number of industrial casualties is 51,514 and death toll is 2,212. The rate of industrial injury is 0.68%.

 

5. Structure of Trade Union

5.1 Trends of union organization

[Table 4] Trends of Unions/Members/Union Density (as of end of each year)

Year

Number of unions

Number of members

union density(%)

1995

1996

1997

6,606

6,424

5,733

1,615,000

1,599,000

1,484,000

12.7

12.2

11.2

 

 

 

 

*Source: Korea Labor Institute

5.2 Characteristics and Change of Union Organization

  • Continuous decline of union density
  • Union system based on enterprise-level
  • Division of labor movement: KCTU and FKTU
  • Urgent need to transform organizational system into industrial union system

5.3 Organizational System of FKTU and KCTU

[table5] Organizational Situation and Structure of FKTU (as of March 1998)

Affiliates

(by Sector)

Number of

local unions

Number of members

Organizational system

Railway

1

30,317

Nation-wide

Textile

152

31,501

Enterprise-level

Mining

24

9,535

Enterprise-level

Electronic power

1

29,393

nation-wide

Foreign company

39

23,365

enterprise-level

Communication

29

14,409

enterprise-level

Port

42

37,823

enterprise-level

Marine

58

44,800

regional/enterprise/sub-industrial

Bank

110

129,250

enterprise-level

Tobacco & Ginseng

Co & Ginseng

1

9,016

nation-wide

Chemical

556

132,569

enterprise-level

Metal

440

153,756

enterprise-level

Printing

45

4,022

enterprise-level

Automobile

561

90,585

enterprise/regional level

General

472

70,199

enterprise-level

Tourism

96

16,649

enterprise-level

Post office

10

29,433

nation-wide

Taxi

935

95,504

enterprise/regional level

Rubber

14

7,219

enterprise-level

Urban train

3

7,427

enterprise-level

Public service

8

5,983

enterprise-level

Apartment

3

5,350

regional-level

Public construction

3

5,429

enterprise-level

Government company

7

22,272

enterprise-level

Total

3,606

1,005,806

 

[table 6] Organizational situation and structure of KCTU (as of Feb. 1998)

Affiliates

Number of Unions

Number of embers

Organizational System

Construction

48

15,000

Enterprise-level

Metal

184

190,742

Enterprise-level

University

72

10,116

Enterprise/industrial level

Hospital

139

35,909

Enterprise/industrial level

Clerical

216

65,000

Enterprise/sub-industrial level

Facilities

16

1,550

Enterprise-level

Press

51

18,212

Enterprise-level

Medical insurance

1

5,081

Industry-level

University lecturers

1

1,000

Industry-level

Teachers

1

10,233

Industry-level

Public service

96

28,376

Enterprise/sub-industrial level

Construction

daily workers

7

800

Enterprise-level

Railway

2

11,336

Enterprise-level

Cargo transport

23

3,100

Enterprise-level

Chemical

57

16,375

Enterprise-level

Communication

1

49,600

Nation-wide

Bank & finance

72

11,977

Enterprise-level

Bus

8

1,300

Enterprise-level

Textile

22

13,000

Enterprise-level

Taxi

236

27,000

Regional/enterprise level

Tourism

6

2,497

Enterprise-level

Total

1,252

518,204

* Recently, Korea Federation of commercial unions was affiliated to KCTU.

 

5.4. Trends of Industrial Dispute

[Table 7] trends of industrial dispute by causes

Year

Total

Unpaid Wage

Wage Increase

Dismissal

Collective Agreement

The Others

1995

1996

1997

1998

88

85

78

129

6

-

1

23

33

19

18

28

1

-

-

3

49

62

51

57

5

3

6

10

 

6. Current Challenges and Subjective Tasks of Labor Movement

6.1 Significant Challenges

  • Globalization: so-called IMF-managing system, global poverty and inequality.
  • Neo-liberalism: deregulation of capital, privatization, flexibility of labor market, trade liberalization, structural adjustment programs
  • Managerial rationalization: workforce retrenchment, flexible employment, efficiency & performance-based wage system, reinforcement of workplace control and company culture

6.2 Subjects Tasks

  • Organization: organizational transformation into industrial union system, expansion and reinforcement of organization, activation of workplace organization, solidarity with civil and social movement organizations, development of capacity of officers and activists.
  • Struggle: improvement of working & life condition, reform of policy and institutions, establishment of solidarity struggle front within labor movement, correct implementation of struggle tactics, set-up of solidarity struggle with social and civil movement
  • Political reinforcement: strengthening of political capacity, construction of political party pro working class, combination of national and class issue
  • Reestablishment of labor movement ideology: ideology based on historical development of labor movement, development of scientific theory and policy, radical transformation of Korean society, set-up of strategic objective for 21st labor movement.

 

7. Actual Condition of Labor Education and Its Developmental Direction

7.1 Actual Condition of Union Education

1. Education of local union

  • Education time in collective agreement: 12.5 hour per a year for union members, 4.1 hour for newly recruited member
  • Education finance: 8.2% of total union budget.
  • Education objective: promotion of participation in union activity and membership, reinforcement of socio-political consciousness, reinforcement of ability to cope with pending issues, training of union practical business.
  • Number of education implementation: 4.1 times for members per a year, 1.8 times for local shop stewards, 3.3 times for local officers
  • Education theme: pending union issues, enterprise management, industrial safety and health, day-to-day activity of union officers, transformation of unions' organizational form, understanding of Korean society, history of labor movement
  • Education method: newsletters, lecture, question & answer, public hearing, workplace discussion, study circle.

2. Education of industrial federation

  • Education finance: about 5% of total union budget
  • Main education themes: labor law, collective bargaining and wage struggle, direction of labor movement, industrial union system, history of labor movement, new management strategy, political reinforcement of working class.
  • Education method: lecture, question & answer, group discussion, public hearing, newsletter for education & propaganda, overseas study trip, media such as OHP or video, study circle.

3 Labor education of NGOs, universities and government agencies.

 

7.2 Problems of Union Education Activity

  • Lack of education opportunity
  • Poor education system
  • Low level of education contents
  • Lecture-centered education method
  • Poor objective and principle of education
  • Lack of link with professional education organizations

7.3 Task for the development of labor education

  • Design of long-term plan and policy for labor education
  • Set-up of organizations for education policy
  • Systemization of education activity(method, organizations, trainees management)
  • Enlargement of education opportunity and security of finance
  • Development of education contents and methodology
  • Activation of study circle
  • Solidarity with professional education agents and international education organizations