Posted on : Jan.22,2019 17:33 KST

Members of the Korean Confederation of Trade Unions calls for the ratification of the International Labour Organization’s seven core conventions in a press conference in Seoul on Oct. 12, 2018. (Park Jong-shik, staff photographer)

EU continues to demand SK government’s recognition of basic labor rights

An official process for resolving a trade dispute has begun in connection with basic labor rights that the European Union (EU) has asked the South Korean government to recognize. The main point of contention is that South Korea and the EU both promised to ratify core labor conventions in their free trade agreement (FTA) that took effect in July 2011, but the South Korean government has not kept its end of the bargain. The EU is calling for intense deliberations while citing aspects of South Korea’s current legislation that contravenes these core conventions, but Seoul’s response has been lukewarm, suggesting that conflict lies ahead.

On the afternoon of Jan. 21, the South Korean government and the EU Delegation in Seoul launched an intergovernmental consultation about the duty to ratify the core conventions that is stipulated in the Trade and Sustainable Development chapter of the South Korea-EU FTA.

“More than the exchange of goods and services, trade means abiding by standards and values. The South Korean government has not taken enough action thus far. We are asking South Korea to ratify the International Labour Organization’s core conventions in the National Assembly and to revise the Labor Relations Act and administrative practices,” EU Ambassador to South Korea Michael Reiterer said on Monday.

In a press release, the EU Delegation also said that the International Labour Organization’s (ILO) recommendations must be reflected in the results of the consultation. This goes a step beyond the EU’s previous request for South Korea to provide a specific timeframe for ratifying the core conventions during the consultation.

The EU’s demands are rather specific. The press release that the EU Delegation released on Dec. 17, when it requested an intergovernmental consultation, made specific mention of problems with South Korea’s current laws. The biggest issue is Article 2, Clause 1, of the Trade Union and Labor Relations Adjustment Act, which defines a worker as an individual who makes a living through income from pay or wages regardless of his or her type of occupation. South Korean courts have ruled that the “dependent self-employed,” terminated workers and the unemployed do not fall into the category of “workers.”

Self-employed workers having trouble proving they are “workers”

The EU Delegation also took issue with Article 2, Clause 4, Subclause B, which states that an organization “shall not be regarded as a trade union [. . .] where those who are not workers are allowed to join it.” When workers in special forms of employment such as delivery workers, substitute drivers and home tutors (all of whom are legally regarded as being self-employed) have tried to establish labor unions, they have long had trouble proving that they are in fact “workers.”

Other problematic passages in this act are Article 23, Clause 1, which only allows currently employed individuals to serve as executives of labor unions, and Articles 10 and 12, which allow the government to reject an application to establish a union. According to international labor standards, union membership, activity and executive qualifications are to be left entirely to the discretion of the union in question, and it has been established several times that a substantive review of a union’s establishment by the government authorities constitutes a violation of the principle of the freedom of association.

Another matter that the EU wants reform on is the South Korean government’s practice of cracking down on strikes – one of the basic rights of workers – by prosecuting workers for interfering with business under the criminal code. The courts and public prosecutors have been criticized for effectively neutralizing workers’ right to strike through these criminal prosecutions. The EU’s demands go far beyond the revision of the Trade Union and Labor Relations Adjustment Act that was previously discussed by South Korea’s Economic Social and Labor Council.

EU requests intergovernmental consultation in dispute

This is the first time that the EU Delegation has requested an intergovernmental consultation over basic labor rights in connection with a trade agreement. “An intergovernmental consultation is a method of officially strengthening communication between the two sides on any issue that impinges on their mutual interests,” the EU said, making it clear that South Korea’s meager protections for basic labor rights are infringing on the EU’s interests. The EU’s position is that South Korean companies are profiting unfairly by violating their workers’ rights. It’s highly significant that the hardliners in the EU who have been increasing pressure on South Korea are mostly involved in the area of trade. On Tuesday, the EU is planning to meet in turn with South Korea’s labor organizations.

If this consultation does not produce a satisfactory solution, a panel of experts will be convened consisting of six experts from South Korea, six from the EU Delegation and six from a third party. The expert panel will submit a report of recommendations to both sides, and the implementation of these recommendations will be reviewed later by the Trade and Sustainable Development Committee.

The South Korean government’s response has been underwhelming. In his opening remarks, Kim Dae-hwan, an international cooperation officer for South Korea’s Ministry of Employment and Labor, reiterated Seoul’s basic stance: “With the goal of ratifying the core conventions, we are supporting social dialogue about ratifying the freedom of association convention that is currently underway at the Economic Social and Labor Council.” According to Kim, this “social dialogue” represents the “continuing effort” by the South Korean government. Because of pushback from the opposition parties, the South Korean government has been unable to put forward a specific roadmap other than an agreement between labor and management.

Considering that the EU pushed ahead with requesting an intergovernmental consultation even though the South Korean government had explained several times that it was pursuing the ratification of the core conventions through social dialogue, it does not appear likely that this consultation will result in a solution.

“The South Korean government doesn’t have any new ideas to offer the international community in regard to ratifying these core conventions, nor are there any indications that it plans to use the EU’s pressure as leverage to win over the National Assembly or the business community,” said Yun Ae-rim, a researcher for the Employment and Welfare Law Center at Seoul National University.

S. Korean labor activists call on government to be more proactive

South Korean labor groups are calling on the South Korean government to be proactive. “The South Korean government has been effectively abdicating its duties by leaving the ratification of the core conventions to social dialogue. If the government fails to make a better response to the EU, South Korea will be remembered as an irresponsible country that fails to keep its own promises,” said Ryu Mi-kyung, international director of the Korean Confederation of Trade Unions (KCTU).

The South Korea-EU Free Trade Agreement was the first multilateral trade agreement to include mandatory conditions about labor and the environment, which appear in Chapter 13 (Trade and Sustainable Development). The two sides are required to make a continuing effort to ratify the ILO’s core conventions and its 77 most recent conventions. The FTA also says that, if the ineffective execution of labor laws on either side has an impact on trade and investment, it can be regarded as a violation of their duties.

By Lee Ji-hye, staff reporter

Please direct comments or questions to [english@hani.co.kr]

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