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The evolutIon of Korea’s industrial relations system and change in the wage-strike relationship

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  • The evolutIon of Korea’s industrial relations system and change in the wage-strike relationship
  • Lee, Young-Myon; Bognanno, Michael L.; Bognnno, Mario F.
  • Korean Social Science Research Council


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Title The evolutIon of Korea’s industrial relations system and change in the wage-strike relationship
Similar Titles
Material Type Articles
Author(English)

Lee, Young-Myon; Bognanno, Michael L.; Bognnno, Mario F.

Publisher

[Seoul]:Korean Social Science Research Council

Date 2004
Journal Title; Vol./Issue Korean Social Science Journal:vol. 31(no. 1)
Pages 34
Subject Country South Korea(Asia and Pacific)
Language English
File Type Link
Original Format pdf
Subject Social Development < Employment
Holding Korean Social Science Research Council

Abstract

For decades, Korea’s brand of state corporatism did not allow “free collective bargaining,” but it did permit striking workers to be paid. We briefly reviewed the evolution of post-1953 industrial relations in Korea, which discloses these facts, and in 1987 and 1997 Korea’s industrial relations system was twice liberalized. Between 1987 and 1990 two important events transpired. First, there was the transition toward free collective bargaining; and second, the practice of paying striking workers was generally discontinued. These phenomena, and the long-standing business practice of keeping private information about firms’ profits, set up two empirical arguments of which were examined: concealing profits from unions suggests an inverse relationship between negotiated wage settlements and strikes in Korea’s manufacturing sector in 1988 and 1990; and since Korean firms generally pursued a “no work-no pay” strike policy by 1990, a reduction in wage settlement increases between 1988 and 1990 is suggested, given strike incidence and strike duration. Qualified evidence of a negatively sloped union resistance curve that shifted downward following implementation of the “no work-no pay” strike policy is found using 1988 and 1990 data sets compiled by the Korea Labor Institute, a research arm of the Korean Ministry of Labor.