Business Leaders Vow to Take Tougher Stance Against Unions

Government, labor and management representatives showed their displeasure over a new labor-management relationship model.

The Federation of Korean Industries (FKI) issued a statement July 2 to make clear their resolution. “We will sternly deal with illegal activities of labor unions and establish a sound labor-management relationship on the basis of constitutional rights,” they said. The country`s leading business organization vowed to seek all possible legal actions against illegal walkouts, including claiming damages and property seizure of the unions.

A new `labor-management culture` proposed by the FKI is that the two sides resolve labor disputes autonomously or leave matters to market principles while the government will punish illegal activities. This is modeled after the U.K. and U.S.

It is noteworthy that the new model goes against the European labor-management model as suggested by Cheong Wa Dae. “We will come up with a new framework for the labor-management relationship,” said Presidential Secretary for Policy Lee Jung-woo on July 1. “We should follow the Dutch model in which trade unions stop demanding higher wages, and their participation in management matters is guaranteed to a limited extent. In addition, all three related parties autonomously coordinate their labor disputes.”

A total of 59 senior officials at FKI`s member companies had a meeting over a new labor-management culture in Yeoido, Seoul, on the same day. “The government`s response to the railway union was a turning point for a desirable labor-management relationship,” they said, claiming that such practices should take root shortly.

In their statement, they said they would push for legal cases against illegal activities, to eliminate the practice of paying striking workers, make unions pay union officials, and finally to alleviate excessive job security on the part of unions.

In response, the Federation of Korean Trade Unions (FKTU) also issued a statement. “The announcement of the FKI is tantamount to a declaration of war as it tries to paralyze unions and exploit workers further.”

In addition, the Korean Confederation of Trade Unions (KCTU) made it clear that management circles are suppressing labor unions, jumping on the bandwagon of the government`s hard-line labor policies. “Bargaining over wages and collective labor agreements is very likely to face tough going at various workplaces and labor unions will raise the level of strikes,” they added.

Unions spoke bluntly of the Dutch model of government, labor, and management, as proposed by Lee Jung-woo. They see the proposal as a clever attempt by the government, which has become increasingly conservative in four months since the February inauguration, to suppress union activities.

“Introducing the Dutch model, in which the left-wing socialist party retained power and the labor-management relationship is more balanced, is nothing but an attempt to look nice on the outside,” an official from the KTCU criticized. He claimed that the Tripartite Committee allows for the government and other experts to participate but is biased in favor of management.

Yeon-Su Shin Kyung-Joon Chung ysshin@donga.com news91@donga.com