'Overcoming the COVID-19 Crisis' Tripartite Grand Bargain Finally Fails... Minnochoom Absent from Agreement Ceremony (Comprehensive)

Labor-Management-Government Dialogue Agreement Ceremony Faces Internal Opposition, Minnochoong Announces Non-Participation
Hope for Grand Compromise in 22 Years Collapses

[Image source=Yonhap News]

[Asia Economy Reporter Lim Cheol-young] The tripartite representative agreement ceremony, which was scheduled to be held for the first time in 22 years, ultimately failed due to the declaration of non-participation following internal opposition within the Korean Confederation of Trade Unions (KCTU). The KCTU held a Central Executive Committee meeting, its internal decision-making body, on the morning of the 1st after missing the final agreement deadline of the 30th of last month, but failed to reach a final conclusion on the provisional agreement.

According to the government, the KCTU notified its non-participation in the tripartite dialogue agreement ceremony, which was scheduled to be held at 10:30 a.m. at the Prime Minister’s Official Residence Samcheongdang in Seoul. Since the launch of the 'Tripartite Representative Meeting for Overcoming the COVID-19 Crisis' proposed by KCTU Chairman Kim Myung-hwan on the 20th of last month, the tripartite parties held numerous discussions, including 14 working-level talks and 5 deputy representative-level talks, and produced a provisional agreement, but it was frustrated as it failed to pass the KCTU’s threshold.

Within the KCTU, criticism arose that the agreement lacked a clause banning layoffs, which was seen as a significant regression, and internal criticism could not be overcome. About 100 KCTU members, including those from the Metal Workers’ Union under the KCTU and the KCTU-affiliated irregular workers’ coalition 'No More Irregular Workers,' physically blocked Chairman Kim in the morning, accusing him of pushing the tripartite agreement without the consent of all members.

From 8 a.m., union members blocked Chairman Kim’s commute, raising their voices in opposition, saying, "We cannot ratify the tripartite dialogue agreement without the consent of all union members." They particularly opposed the abstract nature of the layoff ban for irregular and subcontracted workers and the nationwide employment insurance system in the agreement.

Opponents of the tripartite agreement held placards reading "We never agreed. Resign the KCTU executive," and "Invalid unilateral agreement! Scrap the tripartite collusion!" Some opposing members entered the meeting room where the meeting was held, raising their voices, asking, "Can you ratify the tripartite dialogue without union members’ consent?" The executive body shouted, "Get out of the meeting room," leading to loud exchanges. Although KCTU Chairman Kim Myung-hwan expressed his willingness to participate in the tripartite agreement at the risk of his position despite internal opposition, he ultimately failed to overcome the conflict and did not attend the tripartite agreement ceremony.

As a result, the tripartite grand compromise, which was promoted to overcome the national crisis caused by the COVID-19 pandemic, drifted indefinitely. Expectations had been high as it was the first tripartite grand compromise in 22 years since the 'Social Agreement for Overcoming the Economic Crisis' agreed upon by the tripartite parties during the 1998 International Monetary Fund (IMF) foreign exchange crisis.

The ceremony was scheduled to be attended by KCTU Chairman Kim Myung-hwan, Korean Federation of Trade Unions Chairman Kim Dong-myung, Korea Employers Federation (KEF) Chairman Sohn Kyung-shik, Korea Chamber of Commerce and Industry (KCCI) Chairman Park Yong-man, Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki, and Minister of Employment and Labor Lee Jae-gap, all wearing yellow 'Freesia Brooches' symbolizing trust.

The ten-page tripartite agreement document consisted of five chapters, including 'Government Role and Labor-Management Cooperation for Employment Retention.' It stated the overarching premise that labor and management would cooperate to maintain employment as much as possible, protect vulnerable workers, and revive businesses. The detailed items included ▲ extension of the employment retention subsidy period by three months until September with a 90% increase in support ▲ extension and additional designation of special employment support industries ▲ introduction of nationwide employment insurance ▲ implementation of the National Employment Support System ▲ expansion of public medical infrastructure.