60% of Companies "Labor-Management Relations Unstable Next Year... Concerns Over Labor Movement's Political Struggles"

Six out of ten major domestic companies expressed concerns that labor-management relations will be unstable next year. At the same time, companies identified the biggest source of instability in recent labor-management relations as the 'increase in political struggles by labor unions.'

On the 20th, the Korea Employers Federation conducted the '2024 Labor-Management Relations Outlook Survey' targeting 124 member companies, and 62.3% of the respondents answered that labor-management relations will be unstable next year.

Among the companies that predicted instability in labor-management relations next year, the primary cause was cited as the increase in political struggles by labor unions (39%). This was followed by the diversification of union demands such as wage increases and retirement age extension (36.4%), and an increase in labor-friendly legislation (18.2%).

2024 Labor-Management Relations Risk Factors Survey Results [Source=Korea Employers Federation]

Excluding discussions on wages and welfare benefits, the main issues in wage and collective bargaining negotiations were identified by the largest number of companies as retirement age extension (28.6%). This was followed by reduction of working hours (15%) and expansion of union activities (12.9%).

When asked about the topics that should be discussed first in next year’s social dialogue, more than 50% of companies chose 'improvement of the Labor Union Act to restore the balance of power between labor and management.' Other issues mentioned included improvement of the working hours system (27.4%), legal and institutional reforms for wage system restructuring such as changes to employment rules (8.1%), and measures to promote and stabilize employment of the elderly in response to an aging society (8.1%).

Jang Jung-woo, head of the Labor-Management Cooperation Division at the Korea Employers Federation, said, "Companies are quite concerned about the labor unions’ political struggles ahead of the general elections," adding, "Next year’s labor-management relations are expected to see various union demands such as wage increases, retirement age extension, and reduction of working hours, raising concerns about increased instability in on-site labor-management relations."