Metalworkers Union Announces General Strike on the 20th... Concerns Over Strike Domino Effect

Hyundai Motor and Large Workplace Unions Plan to Participate in Geoje Rally
Business Sector Anxiety Deepens Amid Second Half Government Struggle Forecast

On the 13th, members of the Metal Workers' Union held a rally in front of the Industrial Bank of Korea in Yeouido, Seoul, demanding a wage increase for subcontracted workers at Daewoo Shipbuilding & Marine Engineering. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporters Kiho Sung and Donghoon Jung] The Korean Metal Workers' Union under the Korean Confederation of Trade Unions has announced a general strike scheduled for the 20th of this month, raising concerns within the industrial sector. Amid a global complex economic crisis increasing corporate uncertainties, the union's hardline stance threatens not only industrial damage but also a further deterioration of business conditions. In particular, President Yoon Seok-yeol hinted on the 19th at deploying public authority against the illegal strike declared by the subcontractor branch of Daewoo Shipbuilding & Marine Engineering, which the government has deemed unlawful, increasing the likelihood that the Metal Workers' Union strike will escalate into a more confrontational mode.

Starting with the Metal Workers' Union general strike, the government-related struggles planned for the second half of the year are expected to intensify, deepening the business community's anxiety.

According to the industrial sector on the 19th, unions at major workplaces under the Metal Workers' Union, including Hyundai Motor Company, Kia, and Hyundai Heavy Industries, have decided to participate in the Metal Workers' Union rallies in Seoul and Geoje on the 20th as part of an 'expanded executive' level. The Korean Tire Metal Workers' Union branch will also conduct a four-hour partial strike on the same day.

The Metal Workers' Union is the largest industrial union in South Korea. It includes large workplaces with many production workers in sectors such as automobiles and shipbuilding, with a total membership reaching 200,000. Because of this, there are concerns in the industry about the possibility of a chain strike.

Previously, the Metal Workers' Union conducted an internal vote on whether to hold a general strike from the 4th to the 7th of this month, resulting in 85.1% of voters agreeing to the strike. Currently, about 100,000 union members have secured the right to dispute.

However, despite the Metal Workers' Union declaring a general strike, some view a full-scale strike as difficult. This is because there are virtually no large workplaces where a legal general strike can be carried out. The Metal Workers' Union has issued guidelines instructing workplaces that have secured the right to dispute to directly commence strikes, while those that have not are to participate in all-out struggles through general meetings and education.

Among the three completed car manufacturers and two large shipbuilders affiliated with the Metal Workers' Union, only the Hyundai Motor branch has gone through this process. Even then, the Hyundai Motor union reached a tentative agreement with management last week. The others are still in negotiations and have not secured the right to dispute. Therefore, if the union proceeds with a general strike, it will be difficult to receive legal protection due to the strike being considered illegal.

There are also concerns that if the conflict between the Metal Workers' Union and the government escalates to the extreme, the scale of the strike could become much larger. The Korean Confederation of Trade Unions has already announced a series of large-scale struggles, including the National Workers' Rally on August 15, simultaneous nationwide resolution rallies on September 24, a nationwide workers' rally with 100,000 union members on November 12, and a final struggle at the National Assembly in December to block labor reforms and achieve reform legislation. In particular, the November 12 rally has been declared as the 'largest-scale struggle ever.'

The government has emphasized a strict response to labor strikes and struggles, anticipating a 'strong versus strong' confrontation between labor and government in the second half of the year. On the previous day, Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho issued a joint statement with related ministries, stating that the occupation protest by subcontracted workers is clearly illegal and that if it continues, the government will respond strictly according to law and principles.

Because of this, the industry is focusing on the 'final negotiations' between the Daewoo Shipbuilding subcontractor union and the Korea Development Bank, which have been ongoing since the 15th. If the negotiations fail to reach a proper conclusion, the direction of the strike will become uncertain. In that case, labor struggles are expected to intensify further, and conflicts between labor and government will likely reach their peak.