By Eva Cheng
Since his re-election in April, South Korean President Kim Young-sam has been attempting to moderate the country's highly repressive labour laws in order to gain entry to the Organisation of Economic Cooperation and Development. However, he is being resisted strongly by employers who already have their hands full fighting the organised labour movement.
Workers' struggles against the current labour laws and for wage rises intensified in June despite government threats to arrest workers.
In the annual struggle over wages, some militant unions — especially those associated with the independent Korea Confederation of Trade Unions (KCTU) — have been pushing broader economic and political demands such as the rehiring of workers dismissed for union activities; opposition to "flexible" working hours; a shorter work week; the right of workers to seek outside help in labour disputes; and unions' rights to declare work bans.
Following the June strikes, unions covering workers in the car, public subway and telecommunications industries — 38% of the major work sites controlled by South Korea's top 30 conglomerates — struck a wage deal.
Though it fell short of the 14.8% demanded by the KCTU and the 12.2% claim put by the pro-government Federation of Korean Trade Unions, the rises were higher than the 5% ceiling demanded by the employer groups.
While most workers will remain on a low wage, the fact that some firms were forced to reinstate some dismissed workers worried the biggest private sector employer organisation — Korea Employers' Federation — which warned that the wage rise might spread labour unrest.
As of June 23, 27 firms, including Hyundai Heavy Industries and Korea Broadcasting System, were still trying to settle wage disputes.
After striking for 11 days, union leaders at Hanjin Heavy Industries went on a hunger strike on July 11. On the same day, workers at Daewoo Heavy Industries declared an indefinite strike. A day later, 10 science and technology institutes also went on strike, with 10 others considering similar action.
Reform of the labour law is likely to provoke even more unrest. Trumpeting an "urgent need" to shore up South Korea's "international competitiveness", big business shows no sign of backing down from its demand that workers accept a shrinking share of the pie. Wages have fallen from 56.3% of profits in 1992 to 54.1% in 1994.
Since its formation last November, the KCTU, with 420,000 members, has quickly become an important factor in labour struggles.
It played a key role in last month's 20-day strike in Kia Motors and four-day strike at Mando Machinery, which supplies 60% of parts to Hyundai Motors, South Korea's biggest car manufacturer.