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UNCLAS SEOUL 004034 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ELAB ECON ETRD KS
SUBJECT: STATE OF THE UNIONS 
 
SUMARRY 
------- 
 
¶1.  (SBU) Facing declining union membership and fears that 
the KORUS FTA may further weaken the plight of the working 
class in Korea, the two largest trade union umbrella 
organizations in Korea, the Korean Confederation of Trade 
Unions (KCTU) and Federation of Korean Trade Unions (FKTU), 
are very concerned.  Public support for organized labor 
continues to wane as frequent protests snarl traffic and make 
life difficult for those living and working in downtown 
Seoul.  KCTU is trying to increase its profile by blocking 
the KORUS FTA and by asking the National Assembly to not 
ratify new legislation that makes it easier for employers to 
hire temporary workers.  Despite a relatively weak showing on 
November 15, KCTU continues to threaten broader strikes on 
November 22 if the government does not respond adequately to 
their demands.  END SUMMARY 
 
A HOLE IN THE UMBRELLA 
---------------------- 
 
¶2.  (U) In 2005, the unionization rate in Korea stood at 10.3 
percent, down from a peak of 25.4 percent in 1977.  In 
addition to a move away from unions in general, there is also 
a trend for unions to move away from the two largest umbrella 
organizations, KCTU and FKTU.  Last year, the number of 
unions associated with the two groups fell, while unions not 
associated with either group increased by 130 unions or a 
total of 93,547 workers.  Allegations of corruption and 
questions of allegiance amid the ranks of union officials are 
often cited as reasons for workers losing trust of the 
umbrella organizations.  For these reasons, many workers and 
employers were hopeful that the proposal to allow multiple 
unions in the workplace and the direct pay of union workers 
by the unions would address some of these concerns.  If the 
current proposal stands, these amendments will not go into 
effect until January 2010. 
 
FREEDOM OF ASSEMBLY QUESTIONED 
------------------------------ 
 
¶3.  (U) In a move that enraged unions and drew applause from 
the public, the Seoul Metropolitan Police Agency banned two 
November rallies that were scheduled to take place in central 
Seoul, citing "traffic congestion" as grounds for the 
refusal.  Looking for another opportunity to voice opposition 
to the KORUS FTA and delayed labor legislation, the KCTU 
planned to rally as many as 200,000 members for a march on 
November 12.  The rival organization, the FKTU, had planned 
to gather 30,000 members in downtown Seoul on November 25. 
Both petitions were refused based on Article 12 of the 
demonstration law that allows the police to ban gatherings 
that can cause severe traffic congestion.  The decision by 
Seoul's police also comes about a month after local business 
owners held a protest against protests.  Owners expressed 
their concerns about the lax control by the police of the 
large crowds and the increased chance of violence.  After the 
business owners protest, Seoul's Chief of Police Lee Tak-soon 
said that he would seek measures to ban all demonstrations in 
central areas to prevent traffic congestion. 
 
¶4.  (U) Despite KCTU's charge that the police were limiting 
their right to freely assemble, KCTU went forward with 
smaller scale marches that were purposely toned down to avoid 
unwanted negative publicity.  Police noted that the march 
from Seoul Station to Seoul Square took only 30 minutes to 
complete as opposed to the normal pace of 50 minutes.  KCTU 
representatives at the event were actively encouraging 
participants to move quickly and refrain from chanting 
inflammatory statements during the event.  Woo Moon-suk, 
spokesman for KCTU, said that his organization is trying hard 
to come up with ideas to mitigate negative public views of 
their activities.  The question of how the organization 
operates in future rallies will likely be a point of 
contention as the group selects a new chairman in January 
¶2007.  A recent editorial entitled "Protest the Protests" 
spoke out in favor of limiting the right to assemble saying 
this right should not infringe on the rights of other 
citizens.  Similar editorials appeared in many of the major 
newspapers in Seoul. 
 
¶5.  (U) Despite the prevalence of demonstration in Korea, the 
U.N. Human Rights Committee has expressed concerns that use 
of Article 12 rejections for gatherings may be too broad an 
interpretation of the law.  Last month, the U.N. Committee 
questioned the ROK about the freedom of assembly and 
specifically asked for detailed information about how often 
and under what circumstances Article 12 has been used to deny 
the right to assemble. 
 
STATUS OF THE TRI-PARTITE COMMISSION ON LABOR 
--------------------------------------------- 
 
¶6.  (U) Following a pivotal meeting of the Tri-Partite 
Commission in September, the Minister of Labor, Lee Sang-soo, 
announced that he would submit changes to Korea's labor law 
to the National Assembly.  Although Lee touted the 
announcement as the product of the three parties (government, 
management, and workers) coming together on a key policy 
issue, KCTU was not present at the negotiations, thereby 
calling into question whether the agreement was truly 
representative of all three sectors of the committee.  NOTE: 
The changes, including a further delay in introducing 
multiple unions in the workplace and direct pay for union 
officials, were submitted to the National Assembly and are 
scheduled for a vote before the end of the year.  END NOTE. 
 
LACK OF INTERNAL SUPPORT 
------------------------ 
 
¶7.  (U) In response to KCTU's exclusion from the process, 
albeit self imposed, they announced that their 700,000 
members would launch a preliminary walkout on November 15 and 
a massive walkout on November 22.  When the union put the 
proposed walkouts to a vote, they failed to receive the 
required 50 percent response rate with only 46.8 percent of 
members casting votes.  Some experts cite the lack of votes 
as a general antipathy toward involving unions in a 
"political" issue.  Others point to this as further evidence 
that KCTU's unions are less supportive of the umbrella 
organization's mission than in the past.  In a breakfast 
meeting on November 2, Minister Lee said that he doubted KCTU 
would be able to muster widespread support for a walkout, 
citing their lack of support in recent weeks.  In the first 
walkout staged on the 15th, a less than expected 57,000 
workers participated in a four-hour work stoppage that caused 
Hyundai motors and Kia motors to lose about 1,500 and 1,033 
vehicles worth of production respectively. 
 
COMMENT 
------- 
 
¶8.  (SBU) While it is true that unions are facing some tough 
challenges and many question their tactics and motivations, 
the shift away from trade unions in Korea is also a natural 
progression. As Korea moves from a manufacturing-based to a 
service-based economy, this trend is likely to continue, 
especially as Koreans move away from the difficult and 
dangerous jobs that are often accompanied by lower wages. 
The deficit of low-wage workers is likely to be filled by 
foreigners and temporary Korean workers who are often not 
afforded the same protections and benefits as regular 
workers. 
VERSHBOW