Korean Unions Consolidate

Unions in Korea grew in power with the return to Democracy in the late 1980s. In fact, Union activism was crucial to South Korea's return to democracy. Recent popular opinion toward Korean unions is mixed--some seeing their strikes as harming the Korean economy. Other see that suppliers and vendors suffer when Unions strike. I see consolidating Union memberships is a strategy to bolster unions at a time when their strength is starting to wane.

Chosun Ilbo

Some 20 trade unions with altogether 110,000 members decided Friday to convert themselves into an industry-wide umbrella group to boost their negotiating power. They include the union at Hyundai Motor, the nationÂ?s largest, Kia Motors and GM Daewoo Motor.

The move is expected to strengthen the front of industry unions and force businesses to negotiate with both their in-house union and the industry umbrella. Employers fear this will lend force to excessive labor demands.

Some 38 percent of labor disputes last year came from the Korean Metal WorkersÂ? Union (KMWU), which is now primarily made up of small and medium-sized companies. If the big company unions join, it bodes ill for labor relations, businesses say. Â?The decision means that the unions chose struggle over their jobs,Â? the Korea Employers Federation (KEF) said. Â?ItÂ?s also a problem that companies have no way of responding.Â?

Some 71.5 percent of Hyundai MotorÂ?s unionized workers supported the decision, according to the Ministry of Labor and the industry. An overwhelming majority of unionized workers both at GM Daewoo and Kia also supported the decision.

Others include Doowon Precision Industry, Carrier Korea, Halla Climate Control, Korea Delphi Automotive Systems, SeAh Steel, Hyundai Mipo Dockyard and Daewoo Bus, with altogether 110,000 members voting to join the industry trade union, a goal propagated by the Korean Confederation of Trade Unions (KCTU) for this year.

The 20 unions will join the national metal workersÂ? group, which will become massive with more than 160,000 members, around October. The national body will be in charge of negotiations with the Korea Automobile Manufacturers Association, which represents employers in the industry, over structural reform in the industry, social benefits and other issues of interest. Local chapters will exercise individual negotiating right only on matters such as improving working conditions in individual companies.