Labor Group Serves as Thorn to Foreign Invested Companies

More than 90 percent of companies with foreign stakes of 50 percent or more that reported labor disputes from 2005 to late last month had unions affiliated with the militant Korean Confederation of Trade Unions.

Rep. Park Joon-seon of the ruling Grand National Party, who is also a member of the parliamentary committee on the environment and labor, said yesterday that foreign invested companies accounted for 140 (13.7 percent) of the 1,021 companies that reported labor disputes.

Of the 140 foreign invested companies, 131, or 93.6 percent, had unions affiliated with the confederation.

The portion of labor disputes reported by foreign invested firms doubled from 9.4 percent in 2005 to 18.8 percent this year. Of labor disputes reported at foreign invested companies, the portion of labor struggles occurring at those whose unions are under the confederation also gradually rose from 92.6 percent in 2005 to 96 percent this year.

Of the 23 foreign invested companies that reported labor disputes last year, those whose unions belong to the confederation numbered 22, while only one union was affiliated with the Federation of Korean Trade Unions. Of the 25 foreign invested companies that reported labor disputes this year, the unions of all but one company belonged to the confederation.

The most common cause of labor disputes was a breakdown in wage talks and other negotiations, followed by layoffs to remove redundancy resulting from mergers and acquisitions, the sale of affiliates to foreign capital, relocation of plants, and job security.

Of foreign invested companies that reported labor disputes, four ceased operations in Korea.

needjung@donga.com