Austerity hits South Korean workers
By Eva Cheng
The Korean Confederation of Trade Unions (KCTU) has called off a second round of general strikes scheduled for June 10 and will take part in new negotiations with the government and bosses.
It is not clear if the talks will include a renegotiation of the lay-offs and the employment-related legislation that the government passed earlier this year over KCTU members' opposition. On June 2, the KCTU reaffirmed that it would not recognise those laws in the negotiations.
Only 163 of the KCTU's 223 delegates supported the proposal to re-enter negotiations.
A broad coalition of progressive groups joined a May 30 rally and march in Seoul in solidarity with the KCTU. It was followed by public meetings and marches of 10,000 in Ulsan and 2000 in Pusan. The Pusan gathering of mainly teachers called for freedom of association for teachers and government employees.
Kia Motors workers struck on June 1 for unpaid wages (totalling 157.7 billion won, which came on top of a 50% wage cut), against penalties for a recent strike and for job security.
On June 11, workers on Seoul subway lines one to four suspended their 10-hour strike and began negotiations with management. The workers were demanding a 7.81% pay rise, but management had earlier insisted on a 4.1% pay cut. The workers also demanded the reinstatement of nine workers sacked for union activities; management had agreed to re-hire only four.
South Korean workers continue to be hit by the IMF-imposed austerity. Unpaid wages for the five months to May hit a record 623.5 billion won — including 232.1 billion won of overdue retirement and other benefits — at 2960 workplaces. Unemployment in South Korea rose to 1.43 million in April, from 658,000 in December.
Of the 1780 workplaces employing more than 100 workers which had concluded wage negotiations by May 31, 1230 froze their salary levels for 1998 and 314 settled on a pay cut. Wages for miners dropped 13.7%, bank and insurance workers by 4.8% and manufacturing and hotel workers by 3.4%.
Hyundai Motors said on June 9 that it will review its plan to lay off 6770 workers if the company's union accepts a wage cut of 30%.