Abstract
Labor-management councils (LMCs) are joint labor-management bodies that operate mostly at the plant or enterprise level in KOREA. Historically, however, it is reasonable to assume that the LMCs in Korea began as part of the labor-control policy of the military dictatorship rather than for worker participation. After the democratization of 1987, freedom of association and strike, trade union movement, and democratic labor relations have grown remarkably, yet it is hard to find any substantive change in worker participation.
According to a data analysis of Workplace Panel Survey (WPS2005–WPS2013) that statistically represents businesses with more than 30 employees in Korea, the size of the firm and the existence of the trade union have a decisive influence on the establishment of the LMC. About 10 percent of the LMCs of nonunionized workplaces function as similar trade unions that engage in negotiations and disputes, but the remaining 90 percent are not.
Specifically, in terms of participation in management in the nonunionized workplaces, the institutionalization index representing the degree of institutionalized participation in management through the LMC ranges from 1.8 to 2.7. Since 2.0 is the index for ‘pre-notifications given’, it is difficult to describe this as a high level of participation in management by the LMCs.
Until now, management and unions have shown a passive attitude toward worker participation in Korea. However, the new government is preparing for the introduction of new management participation systems such as worker board-level participation. Therefore, it is necessary to observe and study how worker participation in Korea will proceed and what effect it will have in the future.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
In Korea, council’s operations were regulated under the Act basically to promote the common interests of labor and management through participation and cooperation. The main reason the articles on statement of opinion by public officials and dissolution order of an LMC were deleted was to encourage autonomous cooperation and to prevent the government from implementing them on the basis of sole judgment (see Kim 2000).
- 2.
Because WPS is a panel survey, it’s crucial to keep the same samples. However, in case of temporary shutdown, bankruptcy, and strong refusal, similar workplaces were selected as alternative samples for the survey.
- 3.
Although the final version of the data has not yet been released, according to WPS conducted in 2015, the rate of establishment of LMCs reached 94.6 percent. Although the trend is rising, it is still below the installation rate of 100 percent, which is likely to reflect the actual violation of the law due to the lack of compliance with the LMC. Also, there is a possibility that the respondent (human resource manager) did not recognize the establishment of the LMC for that is in name only.
- 4.
In wage-related discussions, when we divide decision-making into four categories: consensus, formal agreement, consultation, explanation, and hearing, it means that the weight of consensus is not small.
Bibliography
Addison, J. T., Schnabel, C., & Wagner, J. (2001). Works Councils in Germany: Their Effects on Establishment Performance. Oxford Economic Papers, 53, 659–694.
Bae, K., Nho, Y., & Shim, S. (2007). Employment Relations in Nonunionized Enterprises: Focusing on Labor-Management Councils and Alternative Worker Representation Bodies. Seoul: Korea Labor Institute.
Freeman, R. B., & Lazear, E. P. (1995). An Economic Analysis of Works Councils. In J. Rogers & W. Streeck (Eds.), Works Councils (pp. 27–52). Chicago: Chicago University Press.
Hübler, O., & Jirjahn, U. (2003). Works Councils and Collective Bargaining in Germany: The Impact on Productivity and Wages. Scottish Journal of Political Economy, 50, 1–21.
Jirjahn, U. (2009). The Introduction of Works Councils in German Establishment—Rent Seeking or Rent Protection? British Journal of Industrial Relations, 47(3), 521–545.
Kim, G. (2000). Comparative Study on Labor-Management Council Operations—Focusing on a Comparison of Pre- and Post-Legislation of the Act on the Promotion of Worker Participation and Cooperation. Korean Journal of Business Administration, 24, 441–459.
Kim, H., Park, J., & Kim, J. (2011). Study on Improvements to the Employee Representation System. Seoul: Korea Labor Institute.
Korea Labor Institute. (2015). KLI Non-regular Workers’ Labor Statistics. Seoul: Korea Labor Institute.
Korea Labor Institute. (2016). KLI Labor Statistics. Seoul: Korea Labor Institute.
Nho, Y. (2009). The Impact of Nonunionized Worker Representation Organizations on Management Performance. Korean Journal of Industrial Relations, 19(2), 125–151.
Nho, Y., & Park, Y. (2008). Labor-Management Councils and the Commitment of Workers to Trade Unions. Korean Journal of Human Resource Management, 32(2), 77–109.
Rogers, J., & Streek, W. (1994). Works Councils. Chicago: University of Chicago.
Yoo, B., & Kim, D. (2011). Indirect Participation Through Labor-Management Councils in Nonunionized Workplaces and the Impact of Direct Worker Participation on Corporate Performance. Journal of the Korean Corporation Management Association, 18(3), 219–242.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Copyright information
© 2019 The Author(s)
About this chapter
Cite this chapter
Kim, J., Song, M. (2019). Labor-Management Council in Korea: A Look at the Past, Contemporary Trends, and Challenges for the Future. In: Berger, S., Pries, L., Wannöffel, M. (eds) The Palgrave Handbook of Workers’ Participation at Plant Level. Palgrave Macmillan, New York. https://doi.org/10.1057/978-1-137-48192-4_23
Download citation
DOI: https://doi.org/10.1057/978-1-137-48192-4_23
Published:
Publisher Name: Palgrave Macmillan, New York
Print ISBN: 978-1-137-48191-7
Online ISBN: 978-1-137-48192-4
eBook Packages: Social SciencesSocial Sciences (R0)