| President Yoon Suk Yeol bangs the gavel to start a Cabinet meeting at the presidential office in Yongsan District, Seoul, Tuesday. Courtesy of presidential office |
President tightens reins on 'militant' labor unions
By Nam Hyun-woo
A conflict between the government and labor unions has been escalating as President Yoon Suk Yeol tightens the reins on Korea's labor unions, warning that authorities will not turn a blind eye to “illegal practices” committed by “militant” construction unions.
“At construction sites, militant labor unions are still blatantly committing illegal practices such as demanding bribes, coercing employers and hindering construction,” Yoon said during a Cabinet meeting at the presidential office, Tuesday.
“If we leave such violence and illegalities unchecked, we cannot say that we are living in a proper country,” he said. “The government should concentrate its efforts on cracking down on those illegalities and take stringent measures in accordance with the law.”
The comments came after the government conducted field investigations into “unlawful labor practices” at construction sites across the country from Dec. 30, 2022 to Jan. 13, 2023. It detected 2,070 cases.
According to the Ministry of Land, Infrastructure and Transport, more than half of the cases were customary kickbacks made by rebar or concrete companies to tower crane operators to lift their construction materials first.
The government considers this practice illegal and is preparing a guideline to empower local land authorities with law enforcement capabilities. During a meeting with officials from construction companies on Feb. 12, Land Minister Won Hee-ryong said, “The government will issue a guideline regarding kickbacks and will amend enforcement decrees if necessary.”
However, it remains uncertain whether this practice is legal or not, because lower and high courts have expressed contrasting opinions. In 2021, the Gwangju District Court noted in a ruling that paying or receiving customary payments “is a practice that should be eradicated.” But the Gwangju High Court said in an appeals ruling on Tuesday that it is “a decades-long practice and has virtually become a part of the wage,” leaving this case up to the Supreme Court.
Yoon also emphasized the government's firm response to violent activities at construction sites.
According to senior presidential secretary for public relations Kim Eun-hye, Yoon also said during the meeting that “the prosecution, police, the land ministry and labor ministry should cooperate in a complete crackdown” to “eradicate violence at construction sites.”
| Members of Korea Construction Workers Union stage a protest denouncing the government's pressure on construction unions at Southern Gyeonggi Provincial Police headquarters in Suwon, Tuesday. Yonhap |
Recently, Yoon has been making hardline comments against the country's unions as part of his initiative to reform Korea's labor market.
After blasting labor unions on Monday for refusing to disclose their financial records, Yoon reiterated the importance of financial transparency during Tuesday's Cabinet meeting.
“Labor reform starts with enhancing the transparency of unions' financial structures,” Yoon said. “During the past five years, labor unions have benefited from more than 150 billion won ($115.75 million) in government subsidies funded by taxpayers, but now they are refusing to submit their accounting books.”
Yoon referred to the government's recent attempt to examine the accounting books of large labor unions. From Feb. 1 to 15, the government requested 327 labor unions with more than 1,000 members to voluntarily open their accounting books. But 207 of them refused to do so.
Yoon emphasized that advanced countries like the United States and Britain regard financial reporting by labor unions as a legal obligation and said that “the public will not accept providing continuous financial support to labor groups that refuse to maintain financial transparency.”
In response, unions refuted the government's pressure.
Federation of Korean Trade Unions (FKTU) President Kim Dong-myeong said during a meeting with Presidential Economic, Social and Labor Council Chairman Kim Moon-soo, Tuesday, “It will be impossible to find the clue for improvements to labor-management-government relations as long as the government does not change its attitude of not recognizing unions as dialogue partners.”
A day earlier, the Korean Confederation of Trade Unions (KCTU) held a press conference and claimed it does not receive support from the government except for some 3 billion won in deposits for the buildings and offices it rents, which is guaranteed by law.
“The recent push is a tactic to attack labor unions and the main opposition party to gain an advantage in next year's general election and other political events,” the unions' spokesperson said.
The FKTU and the KCTU are the country's two largest umbrella unions. The former is participating in the presidential labor council as a representative of labor unions.
While Yoon was increasing pressure on labor unions, the main opposition Democratic Party of Korea (DPK) and the minor opposition Justice Party on Tuesday railroaded a pro-labor bill to strengthen unions' powers through the National Assembly's Environment and Labor Committee.
The revision, called the Yellow Envelop Act, is aimed at amending articles of the Trade Union and Labor Relations Adjustment Act to limit companies from demanding compensation from labor unions that stage strikes.
Most of the ruling People Power Party (PPP) members in the labor committee boycotted the vote in protest. But they could not prevent the two opposition parties with a majority of seats in the committee from passing the revision.
The revision now needs to be reviewed by the Assembly's Legislation and Judiciary Committee, which is chaired by the PPP. However, if the legislation committee stalls its decision, the labor committee can bypass the legislation committee and send it directly to a plenary session for voting. In this case, the DPK can pass the revision, because it holds 169 out of 299 registered seats in the Assembly.
This will further highlight the clear divide between the PPP and the DPK on labor issues. PPP floor leader Joo Ho-young said, “The revision is unconstitutional and will cause serious damage to the economy,” adding he will ask the president to veto the revision.