LABOUR RELATIONS IN KOREA SINCE DEMOCRATIZATION

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In 1987, after decades of repression, more than 3.500 labour strikes hit the Republic of Korea. Workers from heavy industries and other sectors engaged in demonstrations to protest for better wages, better income distribution, social justice and democracy. Although the desire for a more democratic country should not be considered a direct determinant of the structural characteristics of industrial relations, unions entered the pro-democracy movement on a pragmatic and strategic manner. The demonstrations eventually undermined the control mode of the labor market by State and employers. In late 1987 there were direct elections and Roh Tae Woo was elected president.
Several reforms were implemented during the Roh government. The main changes were related to land ownership, financial transactions, power of conglomerates and labor relations. With the democratization, the benefits and salary adjustments, before exclusivity of a tiny portion of the administrative employees (white collars) of chaebols (Korean conglomerates), have been expanded to other workers (blue collars). In a contrary movement to global trends towards increased flexibility, the internal labor market in South Korea turned to enhance the functional stiffness and wages. Roh launched measures to restructure labor relations. Incomes policies were implemented through social wage agreements between unions and conglomerates. However, the social contract policy was soon abandoned, as several companies ignored the agreements and restricted its application solely to basic salary. During that time, chaebols introduced human resources management methods based on merit and productivity wages. Such model advanced rapidly, especially in the electronics industry. Notwithstandin...

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