"Korean Labor Loss Days 209 Times That of Japan, 10 Times That of Germany"

[Asia Economy Reporter Dongwoo Lee] A survey has revealed that the number of labor loss days due to disputes in South Korea is up to 200 times higher compared to major countries.

The Korea Economic Research Institute announced on the 7th that an analysis of labor-management relations indicators from 2008 to 2018 between South Korea and the G5 countries (United States, Japan, Germany, United Kingdom, France) showed that the "average annual labor loss days per 1,000 wage workers" over 10 years was highest in South Korea at 41.8 days.

In comparison, Japan recorded 0.2 days, Germany 4.3 days, the United States 6.7 days, the United Kingdom 19.5 days, and France 40.0 days. South Korea's labor loss days were 209.0 times that of Japan, 9.7 times Germany, 6.2 times the United States, and 2.1 times the United Kingdom.

Over the past decade, the average union membership rates were ranked as follows: France 8.9%, South Korea 10.4%, United States 11.3%, Japan 17.7%, Germany 17.9%, and United Kingdom 25.4%, with South Korea being the second lowest. However, looking at the 10-year trend in union membership rates, South Korea showed the highest increase, rising from 10.5% in 2008 to 11.8% in 2018, an increase of 1.3 percentage points.

The Korea Economic Research Institute particularly interpreted the 1.1 percentage point increase in 2018 as a result of the growing social influence of unions leading to an increase in union membership. Besides South Korea, only France (0.3 percentage points) saw an increase in union membership rates from 2008 to 2018, while Japan (-1.0 percentage points), the United States (-1.9 percentage points), Germany (-2.5 percentage points), and the United Kingdom (-4.0 percentage points) experienced declines.

The high number of labor loss days due to labor disputes in South Korea aligns with evaluations of labor relations by international rating agencies. In the 2019 assessment of labor-management cooperation levels by the World Economic Forum (WEF), South Korea ranked 130th out of 141 countries, showing a significant gap compared to Japan (5th), the United States (21st), the United Kingdom (24th), Germany (30th), and France (92nd).

In the WEF's comprehensive evaluation of labor market competitiveness, South Korea ranked 97th in labor market flexibility, far behind the United States (3rd), Japan (11th), the United Kingdom (14th), Germany (18th), and France (35th).

The Korea Economic Research Institute analyzed that the low evaluations of South Korea's labor-management cooperation and labor market flexibility are largely due to institutional factors that make equal consultation between labor and management difficult. Unlike other advanced countries, South Korea prohibits replacement labor during strikes, partially allows dispute actions within workplaces, regulates only the employer side for unfair labor practices, and even imposes criminal penalties.

Choo Kwang-ho, Director of Economic Policy at the Korea Economic Research Institute, stated, "Despite low union membership rates, labor loss days are among the highest in the world, and with recent increases in union membership, there is concern that labor loss days will rise further." He added, "To level the playing field favoring labor, it is necessary to create an environment where labor and management can negotiate equally by allowing replacement labor during strikes and prohibiting workplace occupations."

This content was produced with the assistance of AI translation services.