South Korean Labor Unions Prepare to Strike

August tends to be the month Korean unions make new contract demands.

A federation of labor unions representing hundreds of thousands of metal workers, including those at the nation's top auto makers Hyundai and Kia, has called for a one-day nationwide strike against the government's policies on irregular workers.

Korea Times notes that about 110,000 union members - 100,000 with permanent employment status and the rest irregular workers - will respond to the call, staying away from their job for six hours from 10 a.m. on Aug. 26, leaders of the Korea Metal Workers' Federation insisted. The federation has over 80 workplaces and 140,000 workers under its wing.

The planned stoppage will affect nation's manufacturing industries, especially the auto manufacturers.

I think it is interesting that KMWF officials cite their action as the first "political" strike. Political strikes, in which workers protest the government, not their employers, over policies related to workers' interests, are prohibited by law in Korea.

The union, an affiliate of the Korea Confederation of Trade Unions, also demanded the government and conglomerates ensure better job security and stronger labor rights for irregular workers.

In addition, a pending job action at Hyundai might soon erupt...

Korea Herald notes that the union of Hyundai Motor has decided to begin preparations for industrial action, leading the way for a general strike at the largest automobile manufacturer in South Korea.

The decision was made unanimously at a meeting of senior union members in Ulsan.

The dispute is over the union's demands for a voice in the company's plans for business expansion. It argues that the management should consult with the union when it makes a decision to build manufacturing plants overseas Hyundai management sees this demand as "nonsense." Hyundai-Kia has plants in China, India, the U.S. and Turkey, with a Kia plant under construction in Eastern Europe. Plans are also underway for a Kia plant in the U.S.

The management also feels uneasy about the unionÂ’s demands for the company to limit the managerial rights of chairman Chung Mong-koo and his family members.

It also calls for an 8.48 percent salary increase and some 30 percent of profits as bonuses for all employees.

Hyundai officilas said it is difficult for the management to fully meet the unionÂ’s demands with the company facing a number of problems, such as unfavorable currency factors and high raw materials and oil prices.