60% of Companies Say Labor-Management Relations More Unstable This Year Than Last Year

Survey on Labor-Management Relations Outlook for 159 Companies by Kyeongchong
64.2% Say "Revision of the Labor Union Act Will Destabilize Labor-Management Relations"

Source: Korea Employers Federation

[Asia Economy Reporter Changhwan Lee] According to a 2021 labor-management relations outlook survey conducted by the Korea Employers Federation, 59.8% of the 159 respondent companies predicted that labor-management relations in 2021 would be more unstable than in 2020, the federation announced on the 1st.

The Korea Employers Federation explained that the worsening labor-management relations are analyzed as a result reflecting the enforcement of the revised Labor Union Act, deterioration of business conditions due to the prolonged COVID-19 pandemic, and the impact of by-elections and the upcoming presidential election.

Additionally, 64.2% of the surveyed companies responded that amendments to the Labor Union Act, such as allowing dismissed workers and unemployed persons to join labor unions and deleting the regulation prohibiting wage payments to full-time union officials, would destabilize labor-management relations.

The federation stated, "It is analyzed that there is concern that dismissed workers and unemployed persons, who do not have an employment contract with the company, may join labor unions and engage in militant union activities within the workplace, or that collective bargaining agendas may expand from maintaining and improving working conditions to political and social issues beyond internal corporate matters, such as reinstatement of dismissed workers or unemployment measures."

Source: Korea Employers Federation

This year, the start of collective bargaining is expected to be delayed, and the negotiation period somewhat shortened. Regarding the start time of collective bargaining in 2021, the most common response was "after July," accounting for 41.7%.

The most common duration for collective bargaining was "3 to 4 months" (46.2%), and the proportion of negotiations lasting five months or longer is expected to decrease. Regarding the expected wage increase level in 2021, "around 1%" was the most frequently reported.

The Korea Employers Federation said, "In 2020, responses indicating a 2% increase accounted for nearly half, but this year, 1% was the most common response," adding, "The number of companies responding with a freeze is also quite high, reaching 24.4%."

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