Will Single Trade Union Be Created?

Will the Federation of Korean Trade Unions (FKTU) and the Korea Confederation of Trade Unions (KCTU) integrate to create a giant association of labor unions?

FKTU President Lee Yong-deuk, who supports integration, has made unusual moves since taking office on May 25. In the inauguration speech, Lee showed his support for the integration, and on May 28, he met President Lee Soo-ho of the KCTU and asked for cooperation. It was the first time that a leader of the FKTU, which claims itself as the main player in the labor community, went to see a leader of the KCTU.

After Lee Yong-deuk’s visit, the labor community expected that discussions for integration would progress substantially this year.

The integration would be a big bang for the labor community and will have a tremendous impact on the business community as well. The Federation of Korean Industries and the Korea Employers Federation, the two major business associations, may integrate, as was the case in Japan. Let us take a look at the background of the integration issue and its prospect.

The integration talks started well. During the run-up for April’s general elections, the FKTU and the KCTU pursued to seize political power under the banners of the Social Democratic Party and the Democratic Labor Party respectively. While the DLP won 10 seats in the National Assembly, the SDP failed to win a seat. As the FKTU, which has 870,000 members, was defeated miserably by the KCTU, which has 780,000 members, the balance of the labor community tipped towards the KCTU.

The Federation’s leadership resigned, and Lee Yong-deuk, who has advocated the integration, became the new president. It was since then that open consideration of the integration began. President Lee has built friendships with many people in the KCTU and has repeatedly argued that the trade union movement should be led by one integrated force.

President Lee met the leader of the KCTU and said, “I don’t care whether it’s the FKTU or the KCTU. We should strengthen cooperation to correct wrong government policies.” President Lee Su-ho of the KCTU said, “A cardinal principle is one union association in one country. It is desirable that the two associations join forces and integrate into one.”

Now it is certain that at least the two leaderships agree on the integration in principle.

“Although the power is rapidly moving toward the KCTU, the FKTU is still powerful as the federation is well-organized,” said a labor observer. “The sooner the integration talks begin, the higher the stakes that meets its competence the FKTU can claim.” This means that the current condition may make the FKTU to support the integration.

The KCTU also thinks that it should not miss the opportunity to expand. Democratic Labor Party lawmaker Roh Hoe-chan recently said, “The two labor associations need to prepare an opportunity to join forces under one banner.”

Creating an environment for integration is important. The two leaders agreed to embark on bilateral integration talks, signaling a good sign for the integration.

“More sophisticated integration will be possible when each association performs its own job for the integration while advancing the talks,” said President Lee Yong-deuk. Meanwhile, President Lee Su-ho said, “As there are problems that have to be overcome, we need to restore trust under a joint group for the integration.”

Both leaders want to create a favorable environment for the integration through various project exchanges before beginning talks. The labor community believes that the two union associations will be able to narrow the gap and cooperate with one voice by co-hosting labor-movement-related cultural events, policy discussions, and forums under a joint group.

One labor community observer said, “As President Lee su-ho’s KCTU leadership will ‘turn right’ a bit and President Lee Yong-deuk’s FKTU leadership will ‘turn left’ a bit compared to the past, therefore their physical distance will become closer.”

Still, some predict that it will take a long time before a concrete negotiation result is made. A source from the Tripartite Committee of Labor, Business and Government said, “The two associations’ ideologies and goals are almost same. But imagine what songs each of them would sing at a karaoke.” By saying this, he means that much time would be needed before they echo each other as the two association members are too different.

Some association insiders may resist integration. President Lee Yong-deuk’s tenure lasts until next February. If Lee dominates the federation by innovating the FKTU successfully and restoring the federation’s damaged status, the integration negotiations will gain momentum. However, there also is a possibility of failing to coordinate differences within the federation.

Opposition from the KCTU, which is in the exactly opposite situation, is no less easy to handle. Many KCTU insiders agree on the need for the integration, but there’s nothing to beg for. Some criticize President Lee Su-ho by saying, “He only takes a mild stance.”

“I support the integration as it is not desirable for the national economy that the two fight for the authority,” said Professor Cho Joon-mo of the Economics Department at Soongsil University. “If the labor associations integrate, the employers associations such as the Federation of Korean Industries, the Employers Federation and the Korea Chamber of Commerce and Industry also need to restructure themselves to realign their function to deal with the labor.”

Jong-Hoon Lee taylor55@donga.com