Tae-Hyun Kim (KCTU Research Center)

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1 Unions Organiging and Social Protection Initiatives and Challenges facing Korean Unions Tae-Hyun Kim (KCTU Research Center)

2 Table of Contents 1. Summary on Labor Market : Polarization in Labor Market & Irregular Workers 2. Organizing Initiatives 3. Social Protection Initiatives 4. Conclusion 2

3 1. Summary on Labor Market Total Workforce = 24Millons (2011) Non wage workers 6.8M (28%) self employed 5.6 M(23%) non wage family workers 1.2M (5%) Wage employees : 17.5M (72%) regular employees ; 8.8M(36%) irregular employees : 8.6M(34%) 3

4 Who are irregular Workers? regular irregular Numbers (thousand) Permanent contract Fixed term contract Full time Part-time 1,702 Direct employed Subordinated to employer Indirect employed (temporary Agency, outsourced ) disguised self employed special employment workers total 8,653

5 Labor Polarization & Irregular Workers <Size & Numbers of Irregular Workers> Num. (thousand) Rate (%)

6 Wage Gap between Regular & Irregular Workers

7 Wage Inequality D9/D1 Korea US

8 Wage disparity by company size Wage of company with 500 workers or more =100)

9 Low Coverage of social insurance to irregular workers Pension Health I E.I Retire Allowance Bonus Overtime Paid Leave 5D/w Written Contrct

10 Labor Polarization Core Job ( 20%) irregular(in-house subcontractor ) conntractrvic+redundancy Low wage, Irregular work unemployment, underemployment Working poor Periphery Work (Nomad 80%) Self employed

11 2. Organizing Initiatives Strategic Organizing Irregular Workers - Organizing workers in small & medium sized enterprises Research on the Actual Condition - Targeting - Strategic Organizing Organizing in Chaebeol Work Place; Samsung, etc (re)organization of yellow Unions case of Jeonbuk Bus, etc

12 1) Fund for organizing irregular workers 2005 congress decided to raise fund 10 thousand won per 1 members(= 8 US dollars) collected 200 Millions won (2 million US dollars) 1 st strategic organization( ) period train 30 organizers and dispatched to Industrial Unions (Service, Public, Health )

13 1) Fund for organizing irregular workers 2 nd strategic organizing period( ) - focused on medium and micro size firms. - targeting Seoul Guro industrial zone and Incheon airport. - organizing migrant workers, solidarity with GEFONT 1 organizers was dispatched from Nepal(5years). - etc.

14 Case A : Cargo Truck Drivers Before 1997 Asian Financial crisis they were regular workers. But after crisis companies outsourced this workers and became as self employed workers/ individual entrepreneurs. By multiple subcontract and deregulation policy, their working conditions became worse(under M.W) Responsible for vehicles maintenance, insurance, fuel costs. No right to organize, no right to bargain collectively 12

15 Case A : Cargo Truck Drivers TRS(Trunked Radio System ) was used as organizing tool. they used TRS for discussing their problems and meeting at highway rest areas Cargo transportation Workers Federation 2006 Transport workers Union together with railway, bus, subway workers

16 Case A : Cargo Truck Drivers logistic network stopped by strike in 2003, and reached collective agreement with transport companies. government announced strike was illegal because they are not employees. Many union leaders was arrested. Nevertheless, they could sign collective agreement through mass movement.

19 Case B: construction daily workers & construction machine Drivers In Construction sector, 85% of workers are daily workers among 1M workers. daily workers are underemployed. Repeat Employment/Unemployment. social insurance are not covered. Dump, Remicon Drivers and Tower Crane technicians are self employed workers like cargo truck drivers.

20 Case B: construction daily workers & construction machine Drivers Daily workers : organized regional unions and afterwards national Unions dump truck and remi-con truck drivers formed construction transport Workers Union and together with daily workers established Korean Construction Workers Union More than 20 thousand Members.

21 Case B: construction daily workers & construction machine Drivers Initial stage : tens of organizers was trained with the support of IFBWW. Dump truck Drivers, Remi-con Truck Drivers, Tower Crane technicians were organized. organizing one region and go to another region.

24 Case C : in-house subcontracted workers Extreme forms of outsourcing work at same primary contractor company, but indirectly employed by subcontractor company not by primary contractor some workplaces have 100% in-house subcontracted workers. dispatching to manufacturing industries is illegal by law, so it s indirect method avoiding law. Court decided many cases as illegal dispatching, but company and MOL ignored court decision.

25 Case C : in-house subcontracted workers 2003 illegal dispatch accusation struggle. Organizing in-house subcontracted workers. Metal Union made policy 1 union at 1 company. no right to negotiate collectively by MOL, tripartite negotiate (primary contractor. Primary contractor workers union, and inhouse sub contracted workers union) Strike against primary contractor is illegal by court. Many union activists are arrested and fired by termination of contract. complaint with ILO, ILO recommended ban dismissal of subcontracted workers for engaging union activities.

26 Strike of in-house subcontracted workers Hyundai Automobile Workers 23

27 Case D: school irregular workers more than 150 thousands like school food cook, teaching assistant. fixed term workers and not hired by education office/ low wage progressive superintendants of education and members of board of education were elected by 2010 local election.

28 Case D: school irregular workers Organized mainly by local center Solidarity with progressive party and members of board of education--- questionaire, inteview with workers. visit school and meet workers. organized more than 20,000 hiring directly by education office, collective agreement.

29 Rally of school irregular workers

32 case E: college cleaners Solidality with Student Associations organizing 3 colleges and co-negotiate and co-strike(2011). wages are M.W level. And public opinion is favorable to workers.

33 College Cleaners strike

34 4. Social protection Initiatives A. Integration of health insurance associations and raising benefit 1) integration of health insurance association( 94-99) introduction of health insurance to workplaces with 500 or more workers introduction for officials and teachers workplaces with 100 or more workers farming and fishing villages. Workplaces with 5 or more workers urban area.

35 Integration of health insurance associations (94-99) about 400 health insurance associations(employees association, regional associations, official & teachers) finance, benefit, contributions are different(low income farmers contributions are expensive than urban self employed) administration cost 10%, heads are ruling party members or ex-military officers. Poor benefit(180days/year. infants vaccination, pre birth medical examination, CT,MRI are not covered)

36 A. Health Insurance KCTU action for integration integration will make all people equal and fair service with one comprehensive institution reduction of administration costs, better benefit( cover all year, CT, MRI, infant vaccination, pre birth medical treatment. etc) each associations fund is enough. argument that integration would be harmful to workers is selfish and ignoring social solidarity.

37 A. Health Insurance establish Joint organization : KCTU with progressive doctors, pharmacists, farmers associations, urban poor associations, women associations Made Act, signature collecting campaign election promise campaign to political parties. at negotiation with employers, KCTU campaign(119 union demanded) discussions, public hearings, rallies

38 A. Health Insurance results 1)Even ruling party passed act on integration of regional health insurance association by 98 2) 98.2 integration was agreed at social contract 3) FKTU and employees health association workers Union s campaign against integration (integration will raise workers burden) - KCTU countered. TV discussion. 4) integration Act passed parliament.

39 A. Health Insurance Effect of integration 1)All people are covered by one universal health insurance system : enable solidarity 2) Strengthen state responsibilities : each association s responsibilities 3) Democratic Governance - labour, farmers, civic organizations are majority at committee. 12

40 A. Extending benefits Negotiate at gov t committee and struggle 1) Limit 180 days is eliminated 2) CT, MRI are covered by insurance 3) Serious diseases like Cancer, heart disease, CVA ) are 95% covered by insurance( other diseases 80%) Submit a revised bill for free health - cooperation with democratic labour party

43 B. Raising coverage of employment insurance 1) introduction of E.I introduction of employment insurance to workplaces with 30 or more workers(benefit : 50%) 2) Asian financial Crisis 1997 & unemployment rate from 3% to 8% 3) social contract workplaces with 5 or more workers partime & fixed term workers Minimum level to 70% of M.W - special extending benefit 30days -60days - loosening qualifications(6 months)

44 C. Covering social insurance to irregular workers 1) cover employment Insurance to construction daily workers - By law should cover workers who work 1 month, and workplace with 1 workers. - but low enforcement and special employment type they are not covered. - introduction of notebook/card system & Internet

45 C. Covering social insurance to irregular workers 2) cover industrial accident compensation insurance to special employment workers - disguised as self employed, not covered. - now cover remi-con truck drivers, insurance salespersons, golf caddies, door-to-door delivery servicemen, nursing aides and home-study helpers. But they pay half of contribution, while employers pay all in case of workers. - KCTU proposed revised bill to cover IACI to all special employment workers.

46 Chairs for Service Workers!!

47 D. Reduction and exemption of SI contribution to low wage Workers KCTU demanded low wage and irregular workers reduction of SI contribution at 2008 Crisis Gov t amended law 2011, minimum wage level workers /micro company under 10 workers reduction of pension & employment insurance contribution to ½ -1/3.

48 E. Raising Minimum Wage Raising MW to 50% of Average full-time Adult Workers Average Wage Amendment of MW LAW - Apply MW to all workers - Change composition of MWC - Add income distribution into decision making criteria

49 Overview of Korean M.W M.W law was introduced in 1986 and has enforced since 1988 Single MW at national level is adjusted yearly MW level is very low before 2000 Minimum Wage Council : tripartite decision making structure

51 Trends in MW since inflation rate bargained wage increase rate MW increase rate

53 Limit IV. Limits. Many workers wage is below MW(11.5%, 1.95 Millions)

54 KCTU s demand on social protection at economic crisis Strengthening the mini mum wage system Build and strengthen so cial safety nets for the u nemployed Increasing the minimu m cost of living for pov erty reduction The basic right to social security. No privatization of publi c social security syste m. Increasing of public exp enditures for welfare Social Protection Demand - 4,000 won 5,150 won( 10) - Reforming unemployment insurance system : Benefits and C overage - Introduction of unemployment assistance system - Reforming Public Assistance and Medical Aid. - Extension of social security coverage - Basic Old-Age Pension : Benefits(5 15%), Coverage(6 0 80% of old age) - Construction of Public housing for the poor households - Privatization of public hospital and Health Insurance. - Reduction of public pension benefits % of GDP

55 conclusion Never-Ending Movement like Sysiphus for Equilty & Solidarity Thank you!!!

Merger of Statutory Health Insurance Funds in Korea

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