The Economic, Social and Labor Council has begun reviewing whether it is appropriate to keep criminal penalties for employers who commit unfair labor practices. Because the issue sharply divides labor and management, the outcome is expected to carry significant consequences.
Kim Ji-hyung, chairman of the council, said on the 16th that "we are discussing in depth whether it is appropriate to maintain the system of criminal punishment for unfair labor practices," adding that "we are also reviewing reducing the scope of criminal punishment in other areas." Kim was responding to a question from Rep. Kim Hyung-dong of the People Power Party during a parliamentary audit by the National Assembly's Climate, Energy, Environment and Labor Committee. The council is a tripartite body for social dialogue under the president.
Unfair labor practices refer to any illegal acts by employers that infringe on the three basic labor rights, such as obstructing legitimate union activities or refusing collective bargaining. The current Labor Union Act prohibits disadvantageous treatment on the grounds of union activity, refusal of collective bargaining, and control of or intervention in unions. Violations are punishable by up to two years in prison or a fine of up to 20 million won ($14,000).
Abolishing criminal penalties for unfair labor practices is a demand the business community has made persistently. Calls have grown louder since the revised Labor Union Act took effect. Business groups argue that the penalty provision has served as pressure on prime contractors to bargain with subcontractors' unions. Prime contractors in particular have said they face an institutional dilemma when confronted with bargaining demands from subcontractor unions. Refusing to bargain can expose them to criminal punishment for unfair labor practices, while agreeing to bargain can work against them in administrative lawsuits that dispute whether the prime contractor qualifies as an employer.
Labor groups, by contrast, have strongly objected, saying the three basic labor rights guaranteed by the Constitution would be seriously undermined if the criminal penalty provisions were abolished or narrowed. They warn that without criminal punishment, effective sanctions against union suppression or foot-dragging in bargaining would disappear, deepening the imbalance of power between labor and management and allowing unfair labor practices to spread. Some also worry that bargaining between prime contractors and subcontractors could shrink considerably following the revised law's implementation.
An official at the council said it is "one of several agenda items under discussion at the industrial relations institutional development committee," adding that "no conclusion or direction has been decided yet."