¡®No work, no pay¡¯ policy for strikers
September 11, 2009

Strikers who missed weeks of work this year during industrial action haven¡¯t been paid for the time they were off, pleasing the government.

Lee Young-hee, the minister of labor, announced Wednesday that all 75 Korean companies that experienced stoppages this year did not pay their workers for the time they missed. The companies include Ssangyong Motor, which suffered 77 days of strike, and Kumho Tire, whose workers went on a 69-day work stoppage. A dozen other companies are still on strike.

¡°Compensating workers for the time missed has been taken for granted for more than 20 years,¡± said Kwon Hyuk-tae, head of the ministry department handling labor-management conflicts. ¡°But finally, the ¡®no work, no pay¡¯ principle is at work in Korean labor.¡±

Some Korean companies have provided a ¡°strike bonus,¡± offering compensation in an attempt to end the stoppage. Past governments stressed the ¡°no work, no pay policy¡± in public. But in reality, they got involved in labor-management strife and pushed for a quick end to conflicts, turning a blind eye to companies¡¯ practice of paying their workers during a strike.

Choi Young-gi, a researcher at the Gyeonggi Research Institute think tank, said the old practice actually encouraged work stoppages.

¡°The current administration has mostly stayed out of labor conflicts and stuck to no work, no pay,¡± he said. ¡°In turn, individual companies have become more responsible and have honored the principle.¡±

Last July, Kumho Tire¡¯s management provided union members compensation that amounted to half of their monthly wage after negotiations ended. The union went on a strike again, but this time management didn¡¯t budge. Kim Joo-sang, head of public relations at Kumho, admitted that paying workers after strikes had long been a custom at the company but this year, ¡°Both the management and the union agreed that they should all abide by the principle.¡±

The union at Allianz Life Insurance Korea staged a strike for almost two-thirds of last year. Even after sacking 99 branch heads for joining what it called was ¡°an illegal strike,¡± the management still compensated workers for the 234 days they missed. Kia Motors, which goes on strike annually, also paid its employees after last year¡¯s eight-day work stoppage.

But Lee, the labor minister, said the ministry would keep an eye on the application of no work, no pay principle ¡°in real time.¡± He also said he would reveal the list of the companies who don¡¯t honor it and ¡°make them feel ashamed before the public.¡±



By Kim Ki-chan [jeeho@joongang.co.kr]


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