STATE OF THE UNIONS

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