A New Law, and a President's Second Thoughts
I recently
came across a news report suggesting that President Lee Jae-myung had
indicated, in effect, that how a company distributes its operating profits
should not be a matter that labor disputes can address. That comment prompted
me to put a few thoughts in order. The provisions at issue are Articles 2 and 3
of the Trade Union and Labor Relations Adjustment Act (commonly known as the
“Trade Union Act”). The amendment expanded the scope of labor disputes beyond
traditional working conditions to include “management decisions that affect
working conditions.” Going a step further, the same Article 3 broadened the
limits on claims for damages, sharply narrowing the range of situations in
which an employer can hold a union or its members liable for compensation.
That, in a nutshell, is the heart of the issue.
Korea's Union Landscape: Built Around Big Business
This brings to
mind something a well-known labor law professor once said during a course I
took years ago. He pointed out that unions in Korea are, for the most part,
organized around large conglomerates. Even if a law expands union rights across
the board, without distinguishing between large corporations and small or
mid-sized businesses, the real beneficiaries are likely to be what he called
the “laborocracy”—the well-entrenched unions at big companies. Watching this
issue unfold, that observation came back to me.
The Trouble with Hindsight
People tend to
interpret causes only after they already know the outcome. Once a problem
surfaces, it's common to hear people ask, “Didn't you see this coming?” But in
reality, at the time the law was passed, the louder voices were likely arguing
the opposite position. Public sentiment that employers were seeking excessively
harsh damages from workers who took part in strikes played a significant role
in the passage of the so-called Yellow Envelope Act. To turn around now, after
problems have emerged, and ask “Didn't you know this would happen?” strikes me
as not entirely fair.
A Late Awakening, and What's Left Undone
It may be
somewhat late, but I think it's a welcome sign that the President is now
recognizing the reality of the situation. If things continue on the current
path, a range of problems seems likely to follow. That said, the outlook
depends heavily on how the fix is pursued: if the National Assembly were to
resolve this through statutory amendment, that would be one thing. But since
the President has instead pointed to supplementing the law through a
presidential enforcement decree, an actual legislative amendment seems unlikely
to follow. That, I have to say, is the disappointing part.
