Collective Agreements in Korea: Key Points of International Standards

1. Collective Agreements in Korea

2. Common Points of International Standards • Workers rights to organize and CBA • No child labor, • No forced labor • Nodiscrimination • Guarantee of union activity • Facilities for collective bargaining & union activity • Decent wage • Good working conditions and work hours • Health & safety • Information sharing • Consultation right • Job training / skill development

3. Role of Trade Union • Trade Union is a workers’ organization to represent their interests and defend their rights. • Interests • Rights

4. Role of Trade Union Workers’ Interests Workers’ Rights Organize Collective bargaining Collective action Union activity Space and time for union Information Consultation Participation • Wage • Working hours • Working conditions • No discrimination • Health & safety • No child labor • No forced labor (OT) • Job training

5. A Case of Collective Agreement KYUNGHEE UNIVERSITY HOSPITAL

6. Main chapters of CA • General Principles • Guarantee for Union Activities • Personnel Management • Working Conditions • Wage & Severance Pay • Health & Safety • Benefits & Welfare

7. 1. General Principles • Who are negotiation representatives from union and management • Priority of Collective Agreement to other contracts • Applied scope of CBA • Principle of mutual respect • Principle of good faith & sincerity

8. 2. Guarantee for Union Activities • Freedom of union activity, no interference with union activity by management and prohibition of discrimination against union leaders and members • Recognition of paid union activities and meetings for members during working hours • Recognition of paid union education for members (8 hours a year) • Recognition of paid full-time union officers (leaders) • Provision of 2-hour education for new employees by union • Check-off system for membership dues (union fees) • Freedom of posting and distribution of union documents • Provision of facilities for union such as office space, computer, internet and furniture • Provision of company transports for union activities • Provision of company documents and disclosure of company information necessary for collective bargaining and union activities

9. 3. Personnel Management • No discrimination against union members and leaders • Immediate notice of personnel matters concerning union members • Establishment of fair and transparent personnel policy and system (recruit, transfer, dismiss) • Principle of recruitment of permanent workers, not contract workers • In-advance and sufficient consultation on introduction of contract and agency labour • Leave of absence: 1 year - his/her disease & injury; 1 year parental leave; accidental offense by members; 6 months - disease & injury of family members or personal reasons

10. 3. Personnel Management • Sick leave: 60 days per a year with a certificate of health • The period of leave of absence is recognised as his or her service. • Sufficient and in-advance consultation on dismissal due to managerial and operational reasons • Equal treatment and no discrimination regardless of religion, gender, social class • Principle of equal pay for equal work and equal treatment for equal work • Retirement age • Participation of union representatives in disciplinary committee

11. 4. Working Conditions • Working hours: 8-hour daily, 40- hour weekly, 5-day workweek • Shift system • Overtime: maximum 12 hours weekly, provision of meal in case of 2-hour OT • 6-hour work daily in hazardous work • Codetermination on change of working conditions • Provision of meal for night shift • Prohibition of night work for pregnant workers • Monthly standard working hours must be 209 hours. • Overtime work, night work, holiday work is paid with 150% of normal wage.

12. 4. Working Conditions • Paid leave: Saturday and Sunday, national holidays, traditional festival days • Maternity leave: 90-day paid • Guarantee of bread-feeding time: 30-minute two times a day • Paid annual leave: minimum 15-day a year; plus 1-day for each year of additional service • Special paid leave: his/her or family member wedding, 60th birthday; funeral of family members • Guarantee of the right to vote in national elections: 2-hour given for voting • Guarantee of the political right to take government positions (ex; elected politicians): unpaid leave given during the period of taking office • Provision of job training

13. 5. Wage • Composition of wage: basic rate, fixed-rate, legal allowances, bonus, miscellaneous allowances, etc. • Principle of equal pay for equal work • Establishment of wage committee based on equal numbers of management and union participants in case of introduction of performance-based wage or annual salary system • The date to pay wages • The way how to pay bonus (900%) • The way how to pay miscellaneous allowances (meals, skills, family members, seniority – long service, health promotion, traditional festival days, hazardous job, career development

14. 5. Wage • Deduction: taxes, social security fees (national health insurance, unemployment insurance, industrial injury, national pension), union membership dues, the others. • Pay for the person who work below 1 month: half one-month wage in less than 15 days, one-month wage in more 15 days • Establishment of wage table based on seniority, skill-level and job categories

15. Wage Table (example)

16. 6. Health & Safety • Establishment of Health & Safety Committee (based on the Act on Health & Safety at Work) • Setup of medical room with necessary medicines and deployment of medical staff • Regular provision of safety education for employees • Annual measurement of working environment and report on the results to union • Annual medical check-up • Provision of necessary safety equipments

17. 7. Benefits & Welfare • Establishment of resting room, bath room, dress room, sports room, library, medical room, childcare room and dormitory • Provision of uniforms (summer and winter) • Provision of commuting vehicles (bus) • Payment of expenses for congratulation and condolences • Financial support for education expenses for children • Financial support for medical expenses for workers and their family

18. Collective Agreement Hyundai Motor

19. Contents • Preface • General Principles • Union Activity • Social Responsibility & Information Disclosure • Personnel Management • Job Security • Wage • Working Hours, Leaves and Vacations • Gender Equality and Maternity Protection • Health & Safety • Welfare and Training • Collective Bargaining • Labor-Management Council • Labor Dispute • Appendix

20. Preface • Hyundai Motor company and the branch union of Korean Metal Workers Union (KMWU) are committed to the principles of national constitution, labor laws and ILO standards. • Both parties are to improve working and living conditions of members, to improve workers’ welfare, to promote the political, economical, social and cultural status for members in good faith and equal partnership. • Both parties are committed to transparent management and workplace democracy for the sound development of the company as “national” enterprise. • Both parties promise to fully implement the collective agreement with the purpose of protecting national industry and implementing social responsibility as key industry for the independent development of national economy.

21. 1. General Principles • Union is the sole bargaining unit for the company. • Scope of collective agreement (CBA): members and employees of the company. • CBA is prior to company rules and any contract with individual members. CBA shall be better than legal conditions. • Company does not give better conditions or benefits to non-union members • Both parties take responsibility for implementing the CBA. • Scope of union members

22. 2. Union Activity • Company guarantee the freedom of union activity, and does not interfere with union activity with any reason. • Company guarantee the paid union activity in the cases of union assembly, union committee, collective bargaining, meetings and trainings of upper-level unions, the Labor-Management Council, shop stewards meeting, union elections, inauguration ceremony of union leadership, and union financial auditing. • Company give the paid 12 hours to ordinary member for union education

23. 2. Union Activity • Company does not make unfair labor practices, and punish the persons who undermine union, defame union, obstruct union activity, damage union posts. • Anybody, who is recommended by union, can get inside the factory and production lines with union officers • Company provide offices, necessary facilities and equipment for union activities, also cover the necessary expenses for union offices. • Company provide its conveniences such as rooms, transport vehicles, broadcasting systems for union meetings, trainings, activities.

24. 2. Union Activity • Company guarantee union to install union notice board, and does not interrupt the dissemination of union documents. • Company provide union with all the documents concerning wage, welfare, health & safety, production facilities, personnel management, manpower plan, subcontractors. • Company deduct union fees from members’ wage, and transfer it to bank account of the union within 3 days after the day of wage payment. • Full-time union leaders, paid by company, are selected by union itself.

25. 2. Union Activity • Company accept that union has the right to send its selected leaders to the leadership of upper-level unions. • Company pay full-time union leaders with more wage than average wage of the same-level workers. • Company does not punish union leaders, officers, shop stewards without proper consultation with union. • If union leaders finish their term, company make sure them to return to the same position with same conditions. • if union leaders are injured in union activities, company accept it as industrial injury.

26. 3. Social Responsibility & Information Disclosure • Company provide union with the information on financial reports, auditing reports, employment policy, human resources and personnel management, investment plan in 10 days after union demand. • Company inform union of the results of the meeting of board of directors for the purpose of managerial transparency and company democracy. • Company disclose the information on the change of key managers, the change of company structure, recruitment of new employees, job transference of employees, subcontractors and suppliers, financial statements, auditing reports, monthly change of production and sales.

27. 4. Personnel Management • Company do its best to implement fair and reasonable personnel. Company consult with union on the change of personnel system and employment policy. • Company consult with union on disciplinary action against union members. • Company consult with union on personnel rules and wage rules which influence the status of union membership. • Company agree with union on working conditions and job security which influence workers, also agree on disciplinary action against union members.

28. 4. Personnel Management • Company does not monitor email and internet access of union members • Company protect the information on union members such as age, service year, financial transaction, family members, disease, marriage status, property • Probation period is only 2 months. • Temporary worker is used within 2 months. • Retirement age is the last day of the 58th year. • Disciplinary action against members must be informed to and consulted with union.

29. 5. Job Security • Company-union joint committee decide the company plan such as outsourcing, contracting-out and subcontracting. • Company-union joint committee decide the company plan such as new technology, new machine, new investment, new production process, transfer of workforce, retraining. • Company-union joint committee decide the company policy such as expansion of business, acquisition, relocation of production line, which influence job security

30. 5. Job Security • Company does not unilaterally implement lay-offs, collective dismissal, “voluntary retirement”. • In case of vacancy, company employ new employees as permanent worker. • In case of lay-offs with the managerial reason, company inform union and concerned workers of its plan before 60 days of the implementation. In case of ordinary dismissal, before 45 days. • Company consult with union about its plan such as merger, transfer, split sales.

31. 6. Wage • The date of wage payment • The definition of wage • Wage agreement (wage table) • Deduction from wage: taxes, union fee, union funds, social insurances (health, pension, unemployment), fee for employee stockholders association. • Bonus: yearly 750% of normal wage • In case of temporary factory shutdown resulted from electricity blackout and water cut-off, company pay 70% of normal wage. • Retirement pay: 1 month wage per 1-year service • Retirement pension scheme.

32. 7. Working hours, Holidays and Vacations • Definition of working hours: include time for work preparation such as cleaning, company training, stand-by. • Meal time: 1 hour • Rest period: morning 10 minutes, afternoon 10 minutes; to be included into working hours. • Definition of lateness, early leave, outgo • Overtime work: following labor laws • Premium rate for OT: 150% • Premium rate for OT on Sunday and holiday – 18:00-22:00 with 300%, 22:00-06:00 with 350%

33. 7. Working hours, Holidays and Vacations • Paid holidays: national holidays, labor day, new year days, full moon days, company establishment day, union establishment day, etc. • Paid monthly leave : 1 day in a month • Paid annual leave: 10 days in the first service year, and then plus 1 day each year. • Paid leave: government election • summer vacation: 5 days paid • other holidays: 7 days of self marriage, 3 days of child marriage, 3 days of baby birth, 10 days of spouse death, 7 days of death of parents or parents in-law, 7 days of child death, etc

34. 8. Gender Equality & Maternity Protection • 1 day of paid menstruation leave per a month for woman • 90 days of paid maternity leave • Regular education on sexual harassment and sexual violence • Provision of childcare facilities inside factory

35. 9. Health & Safety • Establishment of Health & Safety Committee (HSC): 7 members from company, 7 from union. Quarterly meetings. HSC members must be full-timers paid by company. Company provide HSC office. The HSC decision is equal to the collective agreement. • HSC members become health & safety inspector. Their activity time is fully paid by company. • Company provide monthly 2- hour training on health and safety for workers. • Company disclose the information on health and safety to HSC members. • Company provide health & safety equipments for workers. The equipments are decided by HSC.

36. 9. Health & Safety • In case of serious danger, workers can stop their work and evacuate from the place. • Company implement the measurement of working environment 2 times a year in consultation with union. • The results of the measurement are informed to union and members. • Company set up medical clinics where doctors and nurses work inside factory. • Company provide medical check-up for workers and their family 1 time a year. • Company accept any accident in union activity as industrial accident. • Company set up the committee to prevent the muscle-skeletal disease.

37. 10. Welfare & Training • Welfare facilities: bathroom, laundry, library, canteen, etc. • Regulation on dormitory for workers rights • Company provide uniform for workers; 1 set for summer uniform yearly, 1 set for winter uniform in 2 years. • Company give a gift (equal to 500 USD) for a worker in new year holidays. • Company use local food (not imported one) for canteen. • Company provide commuting buses. • Company provide buses for new year and full moon holidays. • Company provide educational scholarship (up to university) for 3 children per a member. • Company provide proper job trainings for members.

38. 11. Collective Bargaining • Bargaining duty • Bargainers: 20 from company, 20 from union • Minutes keeping

39. 12. Labor-Management Council • Following the relevant law (the Act on Employees’ Participation), company set up the Labor-Management Council (LMC). • LMC consult on job security, new technology, welfare, personnel management, investment plan, employment plan, restructuring.

40. 13. Labor Dispute • Company maintain canteen and other facilities during the strike. • Union allow the workers of boilers, electricity, dangerous chemicals, waters, canteens, bus drivers, medical workers not to join the strike. • Company does neither hire new employees nor replacement workers during the strike. • Company does not claim for damages resulted from the legal strike.

41. 14. Appendix • Expiration: 1 April 2011 to 31 March 2013. • Three collective agreements are made: one for company, another for union, the last one for government. • This collective agreement will be effective even after the change of company name or union name.

42. Common points of CBAs in Korea • Freedom of union activity • Employment policy • Information disclosure (transparent management) • Wage • Working conditions (terms of employment) • Health and safety • Welfare, benefits and trainings • Social dialogue and consultation (Labor-Management Council)

43. CBA of Goodyear Malaysia • Employers – Union Relations • Rights of the company • Rights of the union • Sole bargaining unit • The right to represent on behalf of its members • Terms & conditions of employment • Wages and salaries • Job classification

44. Bad Case of CBAEATON and EIWU Recognition of the company • The Union recognizes the right of the company to operate and manage its business in all aspects, and, in particular, without derogating from the generality of the foregoing, to determine the numbers and deployment of the workforce and the content of jobs, to establish rules and regulations on operations and safety, to determine the efficient utilization of the force, tools and equipment, the means, methods, processes, materials, procedures of production, to engage, promote, retrench, transfer, discharge, suspend or otherwise discipline any employee for cause subject to the provisions of any law for the time being in force. In exercise of its management functions, the company shall not breach any of its obligations under the terms of this Agreement.

45. Bad Case of CBALINATEX and NEUCMRP Recognition of the union • The company recognizes the union as the exclusive bargaining agency in respect of and on behalf of all employees who are eligible for membership, with the exception of the following categories. • Managerial capacity • Executive capacity • Confidential capacity • Security capacity • Temporary employees employed, for a period of up to 6 months only.

46. What is CBA • Law at Workplace jointly made between union and employers through collective bargaining • Tools to achieve democracy at workplace for the rule of law • Workers’ challenge to the following capacity of employers • Managerial capacity • Executive capacity • Confidential capacity • Security capacity • There is no limitation on agenda and topics for CBA.

47. Conclusion • Collective bargaining is a negotiation between union and employer to jointly decide wage and working conditions which influence working life of workers and the livelihood of their families. • Collective bargaining is different from individual bargaining. • Collective agreement is different from individual contract. • Collective bargaining is the most important foundation for democratic and sound labor relations. • Collective bargaining is the most effective tool for good social dialogue • CA must be higher and better than national laws and international standards. • No CA means No union!