The Korean government has decided to impose fines on 52 trade unions for failing to report their finances. This is the first time that such fines have been imposed, and it has raised concerns regarding potential conflict between labor and the government. Despite labor reforms by the Yoon Seok-yeol administration, such as changes to working hours and wage systems, progress has been slow. The decision to impose fines and carry out on-site investigations under the pretext of improved transparency in union accounting is expected to further exacerbate tensions.
The Ministry of Employment and Labor has announced that it will impose fines of up to 5 million won on the labor unions that failed to report on whether they have kept or preserved their financial books and documents. Fines for negligence have already been imposed on five labor unions, including the Federation of Korean Trade Unions and the Korean Confederation of Trade Unions, and will be imposed sequentially following the end of the period for submitting opinions on advance notice. Of the 334 unions that were inspected for compliance with the obligation to keep and preserve financial books on February 1st, only 120 submitted data. The Korean Confederation of Trade Unions had the highest rate of non-submission, at 59.7%.
The Ministry of Employment and Labor will conduct an on-site administrative investigation to confirm compliance with the obligation to keep and preserve documents. Unions that refuse or interfere with on-site investigations will be subject to an additional fine of up to 5 million won, and those who use violence or threats will face severe punishment. Minister of Employment and Labor Lee Jung-sik has expressed support for amendment discussions and stated, “The atmosphere to recognize the rights of union members and fulfill their duties as a union is spreading.”
The two major trade union federations are protesting the government’s measures, defining them as “labor oppression.” They have filed a complaint with the High-ranking Officials Crime Investigation Agency once morest Minister Lee for abuse of power, saying that imposing fines infringes on the union’s sovereignty.
Additionally, the Ministry of Employment and Labor plans to conduct a public survey on the working hour reform plan, which sparked controversy over long working hours. The plan allows workers to work up to 69 hours a week during busy periods and rest when there is less work. After concerns regarding long working hours spread, President Seok-Yeol Yoon ordered supplementation on the plan. The Ministry of Employment and Labor has continued on-site conversations, but there is criticism that it is selective and biased. The government planned to make legislative notice of the revised Labor Standards Act by the 17th and submit it to the National Assembly in June-July, but there may be delays and revisions.
59.7% of the Korean Confederation of Trade Unions, 4.7% of the Korean Federation of Trade Unions
Department of Employment, Retention Obligation Investigation Proceeding Policy
勞 “labor oppression”… Conflict with the government
For the first time, the government decided to impose fines on 52 trade unions that failed to report on their finances. While labor reforms by the Yoon Seok-yeol administration, such as reorganization of working hours and wage system, have not been able to speed up, concerns over conflict between the labor and government have increased as the decision was made to impose fines and carry out on-site investigations under the pretext of improving transparency in union accounting.
The Ministry of Employment and Labor announced on the 9th that it would impose fines of up to 5 million won on a total of 52 unions that failed to report on whether or not to keep or preserve financial books and documents. Fines for negligence were imposed on five labor unions, including the Federation of Korean Trade Unions and the Korean Confederation of Trade Unions, on the 7th, and will be imposed sequentially following the end of the period for submitting opinions on advance notice.
Previously, the Ministry of Employment and Labor had 334 unions with more than 1,000 union members self-inspect their compliance with the obligation to keep and preserve financial books on February 1st, and report the results by the 15th of the same month. Out of 334 unions, only 120 of the 318 unions subject to inspection, excluding unions that were dissolved or in the process of dissolution, submitted data. The rate of non-submission by higher-level organizations was 59.7% (37) for the Korean Confederation of Trade Unions, 4.7% (8) for the Federation of Korean Trade Unions, and 8.3% (7) for others such as non-members, with the KCTU overwhelmingly higher.
In addition to imposing fines on unions that have not submitted final submissions, the Ministry of Employment and Labor will conduct an on-site administrative investigation to confirm compliance with the obligation to keep and preserve documents in accordance with the Act on Regulation of Violation of Order. Unions that refuse or interfere with on-site investigations will be subject to an additional fine of up to 5 million won, and severe punishment will be applied to obstruction of public affairs if they exercise violence or threats during the on-site investigation.
Minister of Employment and Labor Lee Jung-sik said, “Although some unions have expressed opinions that they are not obliged to provide accounting data, the atmosphere to recognize the rights of union members and fulfill their duties as a union is spreading. We will support discussions on the amendment,” he said.
The two major trade union federations are protesting once morest the government’s measures to improve trade union accounting transparency by defining it as “labor oppression.” On the 21st of last month, he filed a complaint with the High-ranking Officials Crime Investigation Agency once morest Minister Lee for abuse of power, saying, “Imposing fines is an act that infringes on the union’s sovereignty.”
Meanwhile, the Ministry of Employment and Labor plans to conduct a public survey on the working hour reform plan, which sparked controversy over ‘long working hours’ over flexible working hours. The reform plan states that workers can work intensively up to 69 hours a week when there is a lot of work and can rest well when there is little work. Afterwards, as concerns regarding long working hours spread, especially among the young generation, President Seok-Yeol Yoon ordered supplementation on the 14th of last month. Since then, the Ministry of Employment and Labor has continued on-site conversations, but criticism is strong that it is selective and biased on-site, while not having a seat with the two major trade union federations. The government planned to make a legislative notice of the revised Labor Standards Act by the 17th and submit it to the National Assembly in June-July through follow-up procedures, but delays and revisions are expected to be inevitable.
Reporter Sejong Park Seung-gi
The South Korean government’s decision to impose fines on trade unions that failed to report their finances has led to a tense situation between labor and the government. While concerns regarding conflicts between them continue, the Ministry of Employment and Labor plans to impose fines on 52 trade unions that didn’t report on their finances. This move has led to protests from the two major trade union federations, who view the government’s actions as “labor oppression.” While discussions on the amendment are underway, the government is also facing criticism for its selective and biased on-site conversations with the two major trade union federations. It remains to be seen how the government will manage to navigate the tensions and move forward with its labor reforms.
