Current Situation of Non-regular Workers in Korea and Relevant Strategies of the FKTU KANG, Hoonjung Executive Director of Organizing Bureau The Federation of Korean Trade Unions

1. Current Situation

 Since December 1997, the Asian financial crisis, a large scale of restructuring, massive layoffs, wage freeze or wage cuts and non-regular/precarious employment have been carried out under the pretext of regaining competitiveness.  Due to employers’preference for non-regular employment, the number of non- regular workers has been continuously increasing since 2001 and currently over 50% of total number of workforce(Table on the next slide).  The average wage level of non-regular workers is around 50~55% of regular workers’and their union density is also far lower than regular workers’because of job insecurity.  An employer inclines toward employing more non-regular workers by reasons of low wage and more easiness of layoffs. In going along with this, the government has attempted at retrogressive revision of labour law to increase employment flexibility in favour of employers. Current Situation

Current Situation(in,000s) Wageworker s 15,882(100.0) 16,104(100. 0) 16,479(100. 0) 17,047(100. 0) Regular 7,268(45.8)7,707(47.9)7,934(48.1)8,455(49.6) Non-regular 8,614(54.2)8,397(52.1)8,545(51.9)8,592(50.4)

2. Strategies of the FKTU (for Non-regular workers)

 For the protection of non-regular workers’rights and job security, the FKTU has carried out various activities for organizing non- regular workers and labour law reforms together at the workplace level as well as at the national level. Guidelines for organizing non-regular workers; Education programme on organizing; Campaigns for organizing; Labour law reforms; Expansion of social insurance coverage; More awareness and publicity by press conferences etc. Strategies

 Organizing non-regular workers through revision of rules and regulations/collective agreements Rules and regulations of some trade unions restricts its membership of non-regular workers. Hence the FKTU has advised its affiliates to revise such restriction in their rules and regulations so that all workers can join trade unions regardless of their employment status. In principle, eligibility of trade union membership shall comply with own rules and regulations. Hence the FKTU guides its affiliates to delete membership eligibility or any relevant clauses in their collective agreements. Also it is recommended to include a union shop agreement in their collective agreement in order to promote unionization of all types of workers and to strengthen solidarity. Guidelines for Organizing

 Supports to form a Trade Union In case of any obstacle for non-regular workers to join existing trade unions, supportive measures are taken for non-regular workers to form their own trade union.  Establish a Regional Trade Union. In practice, non-regular workers and workers of medium and small sized companies, outsourcing and subcontractor companies face difficulty to organize their own union at the enterprise level. Hence it is important to organize a regional trade union targeting medium and small sized company workers and non-regular workers such as daily workers, casual workers, contract workers, outsourced or subcontracted workers, etc. Guidelines for Organizing

 To organize a workshop or an educational programme on the necessity and importance of organizing non-regular workers at least twice per year for those who are in charge of organizing in affiliates and regional offices.  To share experiences about organizing non-regular workers.  To seek and disseminate best practices in organizing non-regular workers.  To discuss about challenges and difficulties of organizing non-regular workers to find out any possible solutions.  To emphasize importance of organizing non-regular workers in every educational classes. Workshop and Education

 To designate October and November as ‘Months of Organizing’ and to intensify and concentrate on organizing activities.  To produce campaign materials to promote importance of organizing activities and to disseminate affiliates nationwide so as to make organizing activities carried out at all organizational levels.  To organize publicity campaigns in the area of industrial complex to form a trade union and join it.  To provide telephone counseling in regard to establishing a trade union and joining a union.  To increase awareness about joining a trade union through IT technology such as an internet. National Level Campaigns

 Various activities to organize non-regular workers such as provision of guidelines, education, campaign and so on, have produced some positive outcomes.  Short term contractual workers(Seoul City Care workers, Lotte World Adventure, Truck Mixers, Job Councilign Workers of MOEL respectively) have formed trade unions since 2000 just after financial crisis.  Chosun Hotel TU : A collective agreement reached in July 2007 included a clause to open its membership to non-regular workers. Since then, 200 non-regular workers joined the union.  Korea Tobacco & Ginseng Union : 400 seasonal employed precarious workers joined the union in October Activities at the Workplace

 Union of Korean Workers at US military base in Korea : In 2001, 1,5000 non-regular workers including part-time workers were organized and joined the union.  Postal Workers’ Union: At the national convention in April 2004, they resolved to make consigned postal delivery workers to join the union and received an membership application. By September 2004, total 3,000 consigned postal delivery workers joined the union.  National Construction/Machinery Union : Based on experiences of organizing non-regular workers, the FKTU has organized National Construction and Machinery Union around disguised workers in July A ctivities at Workplace level

Type of Organizing Unions Extended membership to non-regular workers Korea Postal Workers’ Union, Union of Korean Workers at US Military base in Korea, Federation of Korean Automobile Workers’ Unions, Chosun Hotel Trade Union Established non- regular workers’ TU Lotte World Non-regular Workers’ Union, Seoul City Care Workers’ Union, Korean Construction Truck Mixer Workers’ Union, Korea Industrial Development Trade Union, KBS Broadcasting Professional’s Union, NH Non-regular Workers’ Union Organized by region Chuncheon Non-regular Workers’ Union, Bucheon Non- regular Workers’ Union, Seongnam Non-regular Workers’ Union, Anyang Non-regular Workers’ Union, Bucheon Medium/Small sized Enterprises Workers’ Union, Bucheon Environmental Industry Workers’ Union, Gumi Non-regular Workers’ Union, Suwon Non-regular Workers’ Union, Suwon Daily Workers’ Union, Seoul Local Market Workers’ Union, Yongin Non-regular Workers’ Union, Sungnam Non-regular Workers’ Union, Namyangju Non-regular Workers’ Union, Hwasung Non-regular Workers’ Union, Hwasung Daily Workers’ Union, Osan Non-regular Workers’ Union

 Lotte World Adventure Trade Union, Broadcasting Professionals Union, Care Workers’ Union etc : They made collective agreements for job security measures including setting up retirement age at 57 for those who were mainly 1 year term contract workers. Also discriminatory terms of working condition such as wage, day-off etc was removed.  Korea Tobacco & Ginseng Workers’ Union : They made an agreement with an employer to apply same working condition such as working hour, rest hour, overtime work/night shift/working on holiday, holiday, Annual/monthly leaves etc for seasonally employed workers.  Union of Korean Workers’ at US Military base in Korea : They reached an agreement on protection of outsourced workers’ rights in January Protection Activities at Workplace

 Chosun Hotel : The Union reached an agreement to regularize non-regular workers and to remove any discriminatory terms in bonus payment and pay-rise.  Postal Workers’ Union : Through the collective bargaining with the government, the union achieved to regularize 178 consigned postal delivery workers in September  Job Counseling Workers of MEOL : In 2007, employment status of union members was converted to civil servant of which has more job security. Protection Activities at Workplace

 Woori Bank : Reached an agreement on wage freeze for regular workers in return of conversion of fixed term contract workers to workers with indefinite contract period and application of same welfare schemes to non-regular workers on 1 st March (Total 3,100 non regular workers benefited)  Hana Bank : Conversion of 141 fixed term contract workers to workers with indefinite contract period on 11 th June  IBK : Regularization of 160 fixed term contract workers and conversion of 540 workers to workers with indefinite contract period on 1 st July  Busan Bank : Sub-ordinate position introduced to convert 606 fixed term contract workers to regular workers on 1 st July  KB Bank : Conversion of 5,100 fixed term contract workers working more than 3 years to workers with indefinite contract on 1 st January protection activities at workplace

3. Labour Law Reforms

 As the number of non-regular workers has been souring and discrimination against them has been worsening since the Asian financial crisis in 1997, the FKTU organizes ‘National Workers’ Rally’ in November every year to strongly urge the government and employers to reduce number of non-regular workers as well as to abolish any discrimination against them.  During the struggle for protection of disguised workers’ rights, KIM Taehwan in Chungju FKTU regional office, was hit by a mixer truck and passed away on 13 th June  On 30 th November 2006, the Bill on non-regular workers based on tripartite agreement was passed at the National Assembly and the Act was enacted in July  The FKTU continuously demands the government and political parties to revise labour law to guarantee the freedom of association of disguised workers and so on. Progress Progress

① ‘Act on Protection of Fixed Term and Part-time Employment’  In order to prevent excessive use and abuse of fixed term workers, the act stipulates that an employer shall convert the employment status after 2 years’ working to employment with indefinite contract period.  Without any adequate reasons, the act prohibited any discrimination in terms of wage and other employment condition. - If unfairly treated, workers can file the case to the Labour Relations Commission for any corrective action. - Legal obligation to make an contact in writing - Enforced progressively since 1 st July 2007 and applied to all workplace by July Labour law reforms

② ‘Act on Protection of Dispatch employment etc’ - In order to prevent excessive use or abuse, the employment of dispatched workers are allowed only in the category of business defined by the Act. - The Category of Business : Business defined by Presidential Decree where appropriate after considering knowledge and skill required or nature of business. - Introduction of legal provision to prohibit any discrimination against dispatched workers. - Introduction of legal provision to prohibit any discrimination against dispatched workers. - After maximum period of use(2 years), the employer should employ them directly. - In case of illegal dispatch, the employer should employ them directly after 2 years. - Enforced progressively since 1 st July 2007 and applied to all workplace by 1 st July Labour law reforms

③ Revision of Labour Law - In order to be in line with ILO’s recommendation, the FKTU endeavors to amend labour law which currently does not recognize disguised workers as workers so that the freedom of association of disguised workers is not guaranteed. - Our demands also include the freedom of association and the right to join trade unions for self-employed workers as well as the unemployed, and the recognition of a principle employer who has actual control or direct influence in order for a trade union to bargain with. Labour law reforms

④ Expanding Coverage of Social Insurance - Non-regular workers have not been discriminated only in terms of wage but also in terms of social insurance. Only less then half of non-regular workers(less than 40%) are covered by social insurance. - The FKTU urges the government and the National Assembly to apply Pension Fund, Employment Insurance, Health Insurance, Occupation Accident Insurance to non regular workers. Labour law reforms

4. Press Conference, etc

 Press Conference against retrogressive revision of labour law - January Venue : FKTU - To criticize and block attempt of the government and ruling party to retrogressively revise the act on protection of fixed term employee.  Press Conference to denounce for postponement of enforcement - June In front of Grand National Party(ruling part) - To denounce the government and Grand national party which attempted to postpone the enforcement of the act on protection of fixed term employee  Sit-in Demonstration in front of the National Assembly 국회앞 노숙투 쟁 - June In front of the National Assembly - Sit-in demonstration and press conference to block the attempt to retrogressively revise the act on protection of fixed term employee. Press Conferences and other activities

Thank you for your attention!