6.1 Legislation in brief
The Trade Unions and Labour Relations Adjustment Act governs trade unions and collective bargaining in Korea. The Act provides for the right to establish and operate trade unions, as well as the binding legal effect of collective bargaining. It provides for the protection of basic labour rights of employers and employees. The Act also establishes guidelines for collective action and provides for mediation and reconciliation of disputes.
6.2 Role of trade unions and collective agreements
Under the Labour Standards Act, any workplace with 10 or more employees is required to file detailed written working conditions with the district labour office. These Work Rules must be submitted to employees for review and comment before they are filed (though employee approval is not required). Any subsequent changes which are disadvantageous to employees must be collectively approved by the majority of the workforce.
The Work Rules therefore often form the baseline for negotiation of any collective agreement. Employees have a guaranteed right to seek a collective agreement through their trade union, and employers are required to respond to a collective bargaining request in good faith.
The Trade Unions and Labour Relations Adjustment Act does not expressly regulate the content of collective agreements, apart from the fact that the content should not fall within the categories of ‘unfair labour practices’ set out in the Act. A collective agreement’s term is limited to 2 years.
6.3 Industrial action and disputes
Trade unions may take collective action in the event that good faith efforts to resolve a dispute fail. In practice, industrial action (including that which is strictly unlawful) is common in Korea. Disputes are normally ultimately resolved through conciliation rather than the formal mediation and arbitration processes provided for in the Settlement of Labour Disputes Act.