Ruling Party and Government Accelerate Labor Reform... Ruling Party Proposes 'Union Accounting Data Submission Obligation Act'

Ha Tae-kyung, People Power Party Lawmaker, to Propose Partial Amendment to the Labor Union and Labor Relations Adjustment Act on the 20th

[Asia Economy Reporter Geum Boryeong] The People Power Party proposed a bill on the 20th that requires labor unions with 300 or more members to submit accounting data to administrative authorities annually and excludes those in charge of accounting within the union from audit duties. This is a legislative drive aimed at preventing so-called 'dark accounting' in labor unions.

On the same day, Representative Ha Tae-kyung held a press conference at the National Assembly Communication Office and announced the representative sponsorship of the "Partial Amendment to the Labor Union and Labor Relations Adjustment Act."

The amendment includes mandatory annual submission of accounting data for large-scale unions (300 or more members) in large corporations and public enterprises, stipulates that union auditors must hold legal qualifications such as certified public accountants, and excludes those responsible for accounting within the union from audit duties.

Ha Tae-kyung, member of the People Power Party (Photo by Yonhap News)

Representative Ha said, "The current union accounting system is like entrusting a fish shop to a cat," and explained the purpose of the bill, saying, "If the dark accounting system of unions is improved, the autonomy and right to organize of unions will be further strengthened."

It is expected that requiring unions with 300 or more members to submit accounting data annually to administrative authorities will increase accounting transparency. According to Article 27 of the current Labor Union Act, unions are only required to report settlement results and operational status when requested by administrative authorities. Representative Ha pointed out, "Supervision of union accounting by administrative authorities is virtually ineffective," and added, "Unless administrative authorities detect accounting fraud in advance, it is impossible to discover union misconduct."

The People Power Party argues that the qualifications of union auditors should be strengthened and that those responsible for accounting should be excluded from audit duties. Article 25 of the Labor Union Act requires unions to appoint auditors but does not specify qualification requirements, so those in charge of accounting may also perform audit duties. This structure allows for 'self-auditing' by accounting personnel or audits by acquaintances of union leadership without issue.

Representative Ha pointed out, "Overseas, union accounting audits are strictly regulated," and said, "According to data submitted by the National Assembly Legislative Research Office, Japan requires auditors to be legally qualified persons such as certified public accountants. The United States and the United Kingdom mandate annual submission of union accounting data, and Germany forms multiple audit teams to enhance union accounting transparency."

This legislative movement is linked to the government's 'labor reform.' On the 18th, Prime Minister Han Duck-soo hinted at checking union accounting transparency by stating at the '6th High-level Party-Government Council,' "The government will also reasonably demand transparency in union financial operations."

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