Wage and Collective Bargaining (Imdanhyeop)

A term collectively referring to the collective bargaining process between a labor union and an employer over wages and working conditions, and the collective agreements concluded as a result.

Wage and Collective Bargaining (Imdanhyeop)

Overview

Imdanhyeop (임단협; wage and collective bargaining) is a working-level term collectively referring to the process of collective bargaining between a labor union and an employer (company) over wage levels and working conditions, as well as the agreement concluded as a result. The formal legal terms are “collective bargaining” and “collective agreement,” but in the field of Korean labor-management relations, the abbreviation “imdanhyeop” is widely used because of the practice of handling wage agreements and collective agreements as a single package. Imdanhyeop functions not merely as a decision on a wage increase rate but as an annual social event that influences key corporate management variables such as employment stability, working hours, welfare, and personnel systems.

Key Details

Concept and Legal Basis

The legal foundation of imdanhyeop is the three labor rights (the right to organize, the right to collective bargaining, and the right to collective action) guaranteed by Article 33 of the Constitution. The specific procedures and effects are governed by the Trade Union and Labor Relations Adjustment Act (Labor Union Act). A collective agreement is divided in nature into two parts: the “normative part,” which sets the working conditions of individual workers such as wages, working hours, and leave, and the “obligatory part,” which sets duties of cooperation and peace obligations between labor and management. Article 33 of the Labor Union Act provides that when rules of employment or labor contracts fall below the standards of a collective agreement, that portion is invalid and the collective agreement standards apply, while the “generally binding force” provision in Article 35 and the “regional binding force” provision in Article 36 allow the agreement’s effect to be extended beyond union members. The valid term of a collective agreement in principle cannot exceed two years, and even after the term expires, its effect is extended until a new agreement is concluded.

Bargaining Structure and Procedure

Imdanhyeop usually proceeds in the following order: ① the union’s demand for bargaining and the employer’s notice of acceptance, ② an introductory meeting, ③ working-level bargaining and main bargaining, ④ drawing up a tentative agreement, ⑤ a vote by the union membership (a majority of eligible members voting and a majority of those voting in favor), and ⑥ a signing ceremony and conclusion of the agreement. If an employer refuses to bargain without justifiable reason, this constitutes an unfair labor practice. If bargaining breaks down, a request for mediation is filed with the Labor Relations Commission, and a decision to suspend mediation must be made before a lawful industrial action is possible. For an industrial action to be recognized as legitimate, it must satisfy all four requirements concerning the subject, purpose, procedure, and timing, and workers engaged in essential maintenance work are subject to separate rules such as compulsory arbitration. Unlawful industrial actions entail civil and criminal liability.

Major Issues

The most acute issues are the wage increase rate and the method of distributing performance bonuses. In recent years, as conflicts over the proportion of performance bonuses relative to base pay have grown, confrontation has repeatedly occurred between unions seeking to expand the scope of ordinary wages and average wages and management seeking to reduce it. On the employment agenda, the key issue is the method of “continued employment” after the retirement age of 60 (reemployment, extension of the retirement age, and the wage peak system), and on the working hours agenda, the introduction of a 4.5-day workweek is intertwined with making the 52-hour workweek more flexible. In addition, “joint bargaining” between prime contractors and subcontractors and whether to recognize the bargaining rights of subcontractor unions, guaranteeing the right to collective bargaining for platform and special employment workers, and the procedure for unifying bargaining channels in a multi-union environment have also become major issues.

Characteristics by Industry

In large manufacturing companies such as those in automobiles, shipbuilding, and metals, the so-called “summer struggle” practice of concentrating imdanhyeop in June–August has taken root. The finance and public sectors are strongly influenced by the government’s wage guidelines and budget directives, while in the transport industry—buses, taxis, and freight—strikes have a large social impact through disruptions to passengers and logistics. In recent years, as the proportion of MZ-generation union members has increased, non-wage agendas such as work-life balance, flexible work, and support for self-development have been placed on the bargaining table more often in addition to wage increases.

Recent Trends

In 2024, the Samsung Electronics labor union carried out a strike for the first time since the company’s founding, leaving a symbolic event that marked a shift away from its no-union management line, and as a ruling recognizing the bargaining rights of the Hyundai Heavy Industries subcontractor union was finalized, discussions on the prime contractor–subcontractor bargaining structure began in earnest. In 2025, demands to introduce a 4.5-day workweek spread to the metals, finance, and public sectors, while the business community opposed them citing productivity and cost burdens, widening the gap between labor and management. As legislative discussions proceeded to make continued employment after retirement age mandatory, reform of the wage system and intergenerational equity emerged as new agendas for imdanhyeop. As high inflation and stagnant real wages continued, the level of wage increase demands rose, but the unionization rate stagnated and the landscape of bargaining actors is being reshaped, with the spread of industry-wide unions and solidarity bargaining. In addition, cases are increasing in which job clauses related to the introduction of generative AI and automation, and clauses on reassignment and job redesign, appear in agreements for the first time.