Collective Bargaining
Overview
Collective bargaining (단체교섭, collective bargaining) refers to the act of a labor union collectively negotiating with an employer (or an employers' association) regarding the determination of working conditions and other matters related to labor relations. It is one of the three fundamental labor rights (the right to organize, the right to bargain collectively, and the right to act collectively) guaranteed by the constitution, and is a key means of forming autonomous order between labor and management. A collective agreement concluded through collective bargaining has the effect of replacing individual employment contracts and contributes to the stability of labor-management relations and the improvement of working conditions.
Main Content
1. Subjects and Scope of Collective Bargaining
The subjects of collective bargaining are the labor union (on the workers' side) and the employer or employers' association (on the management side). The scope of bargaining includes wages, working hours, holidays and vacations, welfare benefits, disciplinary and dismissal standards, personnel transfers, work environment, safety and health, employment stability, and other matters related to working conditions and labor relations in general. Courts and the Labor Relations Commission stipulate that an employer's refusal or neglect of bargaining without justifiable cause constitutes an unfair labor practice.
2. Types of Collective Bargaining
- Wage Bargaining: Discusses the overall wage system, including basic wage increase rates, performance-based pay, bonuses, and allowances.
- Working Conditions Bargaining: Covers the 52-hour workweek system, flexible working hours, shift systems, and leave systems.
- Employment Stability Bargaining: Addresses restructuring, layoffs, employment succession, and reassignment.
- Welfare Benefits Bargaining: Includes housing loans, tuition support, medical assistance, and retirement pensions.
- Occupational Safety and Health Bargaining: Deals with hazard removal, provision of protective equipment, and health checkups.
3. Procedure of Collective Bargaining
1. Bargaining Request: When a labor union requests bargaining, the employer must respond without delay.
2. Unification of Bargaining Channels: In workplaces with multiple unions, a representative bargaining union is determined (through voluntary unification or formation of a joint bargaining representative).
3. Main Bargaining: Discussion of issues, exchange of opinions, and proposal of alternatives.
4. Provisional Agreement: The bargaining results are documented and put to a vote among union members.
5. Conclusion of Collective Agreement: After the vote passes, the agreement is signed and sealed, taking effect.
6. Implementation and Disputes: If disputes arise over interpretation during implementation, the Labor Relations Commission may mediate or arbitrate.
4. Principles of Collective Bargaining
- Duty to Bargain in Good Faith: The employer must engage in bargaining sincerely and must not delay or avoid it.
- Duty of Confidentiality: Confidential business information learned during the bargaining process must not be disclosed.
- Peace Obligation: During the validity period of a collective agreement, industrial action should be refrained from (peace clause).
- Autonomy of Bargaining Scope: Labor and management are free to set the agenda as long as it does not violate the law.
5. Effects of Collective Bargaining
A collective agreement is binding not only on the parties but also on all union members, and the employer must apply the same conditions to all workers (general binding force). Furthermore, any employment contract that violates the collective agreement becomes void, and the void part is replaced by the standards set in the collective agreement (supplementary effect).
Recent Trends
From 2024 to 2025, collective bargaining in South Korea is undergoing the following changes:
- Digital Transformation and Expansion of Bargaining Agenda: The employment impact of AI and automation, telework and hybrid work systems, and digital labor monitoring are emerging as new bargaining issues.
- Bargaining Rights for Platform Workers: Increased unionization among platform workers (e.g., delivery, ride-hailing) and growing demands for recognition of collective bargaining rights. The Ministry of Employment and Labor established guidelines for platform worker bargaining in 2024.
- Revitalization of Supra-Enterprise Bargaining: Industry-level and regional bargaining (e.g., Metal Workers' Union, Health and Medical Workers' Union) is expanding, shifting the focus from individual enterprise bargaining to supra-enterprise bargaining.
- ESG and Bargaining: Climate change response and carbon neutrality transitions are emerging as bargaining issues. Cases of labor-management consultation for a just transition are increasing.
- Legal and Institutional Changes: The 2024 amendment to the Trade Union Act simplified the procedure for unifying bargaining channels and strengthened remedies for unfair labor practices. Starting in 2025, the expansion of the Serious Accidents Punishment Act to workplaces with fewer than 30 employees mandates safety and health bargaining.
- Linkage between Industrial Action and Bargaining: When wage bargaining breaks down, industrial actions such as strikes and work-to-rule actions are frequent. In the second half of 2024, the nationwide wage bargaining of the Korean Metal Workers' Union saw the longest strike in history.
Related Topics
- [[Labor Union]]
- [[Collective Agreement]]
- [[Unfair Labor Practice]]
- [[Three Fundamental Labor Rights]]
- [[Industrial Action]]
- [[Labor Relations Commission]]
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