Yoon Emphasizes Transparency in Union Accounting for Labor Reform
Minister Lee Jeong-sik: "Unions Not Complying with Accounting Obligations Will Be Excluded from Support"
Recovery of Subsidies Detected as Fraudulent Also Enforced
[Asia Economy reporters Ki-min Lee and Moon Je-won] On the 20th, President Yoon Seok-yeol received a report from Minister of Employment and Labor Lee Jeong-sik on the submission of labor union accounting books and future response plans, and pointed out that "there is no future for the youth of the Republic of Korea without ending the harm caused by militant unions."
The government plans to take a zero-tolerance approach against unions that fail to submit one cover page and one appendix page of the accounting books, including imposing fines, excluding them from support, conducting on-site investigations, and recovering funds if fraud is detected.
President Yoon said to Minister Lee in the afternoon, "Without securing transparency in union accounting, fair labor market reform cannot be achieved," according to a senior official from the presidential office during a briefing at the Yongsan Presidential Office.
Earlier, during a weekly meeting with Prime Minister Han Duck-soo, President Yoon also mentioned, "The starting point of union reform is transparency in union accounting," and stated, "We have no choice but to take firm measures against acts that deny the rule of law and refuse to disclose usage details while using thousands of billions of won in government subsidies funded by taxpayers."
The briefing took place immediately after Minister Lee reported to President Yoon at the Yongsan Presidential Office on enhancing transparency in union accounting and response measures.
Minister Lee said, "As a measure to strengthen transparency in union accounting for establishing the rule of law between labor and management on-site, we will first strictly respond with a zero-tolerance principle to 207 unions that did not keep or submit accounting books. We will immediately grant a 14-day correction period and impose fines if not complied with," adding, "If non-compliance continues, on-site investigations will be conducted, and additional fines will be imposed if there is obstruction or evasion."
Additionally, from this year, labor organizations that do not comply with accounting-related legal obligations will be excluded from government support projects, and all subsidies provided so far will be thoroughly investigated, with strict measures such as fund recovery if fraud is detected.
In particular, even before legal amendments, unions that do not submit accounting materials will have the current 15% tax credit on union dues reconsidered from the ground up.
Minister Lee explained, "We will also prepare legal and institutional improvement plans to regulate illegal and unfair acts by unions and promote modernization of labor laws in line with global standards," adding, "We will soon announce the legislative notice for amendments to the Labor Standards Act related to working hours and plan to promote fundamental institutional improvements across labor laws, including dispatch work, through discussions at the Tripartite Commission."
Earlier, to strengthen transparency in union accounting, the government requested 327 unit unions and federations with more than 1,000 members to submit accounting-related materials from the 1st to the 15th, but only 120 (36.7%) submitted materials as requested by the government.
Except for the Korean Confederation of Trade Unions (KCTU), all cover pages were submitted, and regarding the claim that the government has no right to inspect the inside pages, Minister Lee pointed out, "We are not trying to look into the contents specifically, but according to Article 14 of the Labor Union Act, there is an obligation to keep and preserve important documents and inform union members, and the way to verify this is to attach at least one inside page. This is executing the law while minimizing the burden on unions, but not attaching inside pages is an act against the purpose of the system and government policy."
Regarding the approximately 3 billion won in government subsidies received by the KCTU and the rest being costs for carrying out government projects rather than subsidies, he said, "Since taxpayers' money is involved, it must be strictly examined."
In response to a reporter's criticism that "If the Ministry of Labor confirms the support funds provided by local governments and the government and the pre-deduction details, can't it verify the total income? Hasn't the government been lenient with large unions so far?" Minister Lee said, "There are tasks for the Ministry of Labor and tasks for related agencies such as the National Tax Service. In the past, the government neglected its duties stipulated by law under the pretext that 'unions are the weak' and 'autonomy must be guaranteed.' However, reflecting illegal and corrupt situations in various industrial sites, the full emergence of the MZ generation, and public opinion, the government is naturally doing what it must do, and I said we will reconsider the tax credit on union dues," criticizing the previous Moon Jae-in administration.
Regarding a reporter's comment that "There are claims of violating ILO fundamental conventions, and labor reform failed when labor-government relations deteriorated," Minister Lee responded, "We are acting according to international conventions and current laws," and added, "The status of unions has changed from the past. Especially with the MZ generation, which accounts for 45% of the economically active population, demanding transparency, the government is only now requiring transparency in union accounting."
Minister Lee particularly emphasized the rule of law as the core of union reform, stating, "No matter how many laws are made, they are meaningless if not followed," and questioned, "They say it's labor oppression, but we are ensuring both labor and management comply with the law according to global standards. Unions demand the eradication of unfair labor practices and punishment of workplaces that harass workers, but is that oppression by the management?"
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