Even Dismissed Employees Enter Workplaces... Labor Disputes Expected One After Another in the Second Half of the Year

Amendment to the Labor Union Act Effective from the 6th
Non-Employees Allowed to Join Company-Specific Unions and Participate in Workplace Union Activities

[Asia Economy Reporter Kim Heung-soon] "If the number of people joining labor unions increases, there is no choice but to worry that the union's demands during future strikes could carry more weight."

With the amendment to the "Labor Union and Labor Relations Adjustment Act (Labor Union Act)" taking effect from the 6th, allowing dismissed workers and unemployed persons, among other non-employed individuals, to participate in labor union activities at individual company workplaces, the business community is on high alert. This is because, amid movements toward labor disputes (strikes) ahead of wage and collective bargaining negotiations (wage and collective bargaining agreements) in the completed car industry and others, the implementation of the amended Labor Union Act is expected to increase workplace conflicts. Despite the COVID-19 situation, losses at workplaces due to strikes increased last year compared to before, and there is growing concern that this could increase even more this year, lending weight to the view that such worries are not unfounded.

Work Loss Days Already 115,000+ This Year
Business Community Expects 600,000~700,000 Days if Labor Disputes Escalate
Strike Movements Continue in Completed Car, Shipbuilding, and Delivery Industries

According to the Ministry of Employment and Labor and economic organizations, as of May this year, the number of work loss days due to strikes and other causes has reached 115,000, already far exceeding the 85,000 days recorded in the first half of last year. Work loss days is an indicator measuring social loss in terms of workdays, caused directly by labor disputes leading to suspension of operations for one workday (8 hours) or more. For example, if 1,000 wage workers strike for ten days, the work loss days are calculated as 10,000 days.

Although the official statistics for June are not yet available, the industry estimates that work loss days exceeded 120,000 in just the first half of this year. A business community official said, "Due to the influence of wage and collective bargaining agreements, work loss days in the second half of the year typically increase by about 4 to 5 times compared to the first half," adding, "If labor disputes are promoted by the implementation of the amended Labor Union Act, the annual loss days this year are expected to reach 600,000 to 700,000."

Work loss days dropped to 402,000 in 2019, the lowest level since 429,000 in 2011, but increased again after recording 554,000 last year. The industry attributes this trend to strikes by labor unions in the completed car sector.

This year, signs of ongoing labor disputes are emerging mainly in the completed car, shipbuilding, and delivery industries. Hyundai Heavy Industries' union has already launched a full strike, and the Korean GM union has voted 76% in favor of striking. The Hyundai Motor union also plans to hold a strike vote among all union members on the 7th. The delivery workers' union conducted a total strike lasting eight days last month.

A delivery industry official predicted, "With the implementation of the amended Labor Union Act, the intensity and frequency of union struggles are likely to increase, which will also place a burden on negotiations aimed at reaching labor-management agreements."

The Hyundai Motor Union is holding a temporary delegates' meeting on the 5th at the Hyundai Motor Culture Hall in Buk-gu, Ulsan, to resolve disputes related to this year's wage and collective bargaining agreement violations. [Photo by Hyundai Motor Union]

Dismissed Workers' Workplace Access... "Regulations Left to Discretion"
Labor Side: "Claims of Disputes and Damage from Dismissed Workers' Workplace Access Are Premature"
Business Side: "Concerns Over Provoking Hardline Public Opinion and Inducement"

Despite opposition from the business community, the amended Labor Union Act was passed by the National Assembly through government legislation in December last year. Major economic organizations such as the Federation of Korean Industries and the Korea Employers Federation have particularly expressed concerns that Article 5, Paragraph 2 of the amendment, which stipulates that "non-employed persons such as dismissed workers and unemployed persons may engage in labor union activities at the business or workplace to the extent that it does not interfere with business operations," could trigger labor disputes.

Accordingly, they demanded the government include grounds to limit access facilities or require dismissal to prevent losses such as strikes caused by non-employed union members' activities within the workplace. On the other hand, the Ministry of Employment and Labor maintains that regulations on workplace access should be determined by each company through internal rules or collective agreements.

Regarding this, industry opinions are divided. A labor representative dismissed claims by citing the provision that "non-employed persons cannot participate as union executives or in decision-making activities," saying, "It is premature to claim that disputes will spread and damage will occur at workplaces due to their access even before the amendment takes effect."

Conversely, a business community official expressed concern, saying, "Dismissed workers are usually those disciplined for illegal acts or causing harm to the company," adding, "Even if they do not participate in decision-making, there is ample possibility that they will create hardline public opinion or induce disruptive actions."

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