Labor Unionists Virtually Restrain Korean Companies of HR Management

The Federation of Korean Industries (FKI) announced Sunday that it would try to prevent introduction of the five-day workweek system as was requested by metal union workers.

On releasing a report entitled “Background and problems of the agreement in negotiations with metal workers”, the FKI said, “A day off on Saturdays is included in monthly and annual leaves even for employees at big companies with comparatively high profitability. In this situation, it is concerning that small and medium-sized enterprises (SMEs) decided to adopt the five-day workweek without pay-cut.”

“Temporary agreement approved by metal workers was a product of aggressiveness of the labor union”, denounced the FKI and warned, “If the violent labor activities go unchanged, it will bring about serious implications on business activities in Korea.” The federation also stressed that labor unions demanded limitation of the employment of temporary workers to 3-month period as well as approval of the union in case of protracting the contract, which was an absolute constraint on the capability of corporate management.

The FKI expressed concerns over the possible implications of the tentative agreement of metal workers, such as a rising demand for the five-day workweek by big company workers under the Korean Confederation of Trade Unions, such as Hyundai Motors and Kia Motors: a procrastinated legislature at the National Assembly: and a protracted conflict between labor and management.

Against this backdrop, the FKI publicly pledged its utmost efforts in distributing to businesses analysis information on problems and implications of the provisional agreement as well as guidelines regarding the five-day workweek, sticking to the principle of “no work, no wage” to discourage unionists from too much demanding while strengthening programs to teach global standards, and conceiving measures to protect the national competitiveness from any harm.

Yeon-Su Shin ysshin@donga.com