Federation of Korean Trade Unions Cooperate in Stabilizing Wages

The Federation of Korean Trade Unions revealed its intention to cooperate in stabilizing wages aimed at creating employment.

“If necessary from a broader viewpoint, we will accept the management world’s call for the stabilization of wages,” said Kim Seong-tae, the secretary general of Federation of Korean Trade Unions, in an urgent roundtable talk for employment creation and labor-management relations held by Dong-A Ilbo on January 14.

Stabilization of wages here is a notion which comprehends a wage freeze, a wage hike matching the inflation rate, a wage hike within productivity increase, and a wage increase equaling the inflation rate plus the economic growth rate, and signifying suppressing a rise in wages.

In regard to the argument of Cho Nam-hong, full-time vice-chairman of the Korea Employers Federation, that the labor world should first cooperate in stabilizing the wages for creation of employment, Kim refuted at first saying, “Enterprises should show their will for transparent business and activity in new investment prior to demanding stabilization of wages.”

However, when Lee Won-deok, chairman of Korea Labor Institute, said, “An agreement for employment creation can be concluded when the labor world steps back,” Kim said that he “agrees to stabilization of wages for the sake of justice.”

Following this, the opinion gap between labor and management, which was criticized as the largest obstacle in concluding an “agreement for employment creation,” pushed on by labor, management, and government appears to be narrowed.

“As the labor world steps back, the management world should also put efforts such as declaring transparent management and recognizing laborers as a conversation partner,” said Kim.

Ho-Gab Lee gdt@donga.com