Korean Labor Unions Enjoy Unrivaled Privileges

Korea's labor unions continue their ritual yearly strikes with ever noisier demands for more money and perks even as their productivity has failed to catch up and production is being moved overseas.

Unionized workers at Hyundai and affiliate Kia downed tools for seven years in a row from 2012-2018, causing the automakers W15 trillion in production losses (US$1=W1,169). Those at GM Korea downed tools for 103 days, whereas Japan's Toyota did see a single strike over the last 57 years.

The numbers were cited at a forum on Wednesday hosted by the Korea Automobile Manufacturers Association. Kim Joon-kyu at KAMA said, "It's rare in any advance economy that wage negotiations and strikes take place every year. This is a privilege enjoyed only by Korea's militant unions."

Experts speaking at the forum pointed out that the Moon Jae-in administration's efforts to improve labor conditions ended up only strengthening the vested rights of unionized workers and harming all others. They warned that the government focused too much on idealistic goals and failed to boost labor flexibility and achieve reforms, which simply prompted business to cut back on new hires.

At Volkswagen in Germany, unionized workers can down tools only if 70 percent of workers support a strike. In Korea, diehard unionists, who make up less than 10 percent of total workers, only need a simple majority and are allowed to stage sit-in protests in factories.

Kim Tae-gi of Dankook University said, "Government policies such as the steep minimum-wage hike and capping the working week at 52 hours only strengthened the vested rights and voice of workers in big businesses, state-run companies and government agencies."