Following its ratification of the International Labor Organization’s Conventions (the “ILO Conventions”), the Korean government has recently submitted to the National Assembly the deliberated and resolved amendment to the Trade Union and Labor Relations Adjustment Act (“TULRAA”), which addresses key issues from the ILO Conventions (the “Amendment”).   

Once the National Assembly passes the Amendment and ratifies the International Labor Organization’s Conventions, they become legally valid, in which case we anticipate substantial changes with the labor-management relations to follow on many fronts, including union membership, selection of union officers, wage calculation for full-time union officers, and bargaining method, among others.  Accordingly, any progress with the Amendment and ratification of the ILO Conventions in the National Assembly should be continuously monitored for a thorough understanding of the amended TULRAA. 

Please find below the key provisions of the Amendment: 
 

• Recognition of Union Membership Status for the Unemployed/Terminated
   
  • Regardless of the form/structure of the trade union, unemployed/terminated workers can be members of the trade union.
  • However, the scope of union activity carried out by members who are unemployed/terminated shall not cause any disruption to the efficient operation of the business. 
     
• Eligibility for Union Officer
   
  • Union officer eligibility may be determined by the union’s bylaws.
  • However, union officer/representative eligibility for company-based unions shall be limited to union members who are employees of the company. 
     
• Payment of Wages to Full-Time Union Officer
   
  • A provision prohibiting payment of wages to a full-time union officer is removed from the TULRAA, thereby allowing employers to provide wages to full-time union officers.
  • However, a full-time union officer shall be allowed to engage in union operation/management activities within the maximum paid time-off limit to improve labor-management relations and activities set forth under the law, including negotiations/bargaining, grievance handling, and industrial safety and health activities, without a reduction in wages.
  • The employer’s consent or collective bargaining agreement to provide compensation to a full-time union officer beyond the paid time-off limit shall be void.
  • A Time-Off System Deliberation Committee shall be established within the Economic, Social and Labor Council.
     
• Obligation to Faithfully Bargain with Individual Trade Union
   
  • Upon the employer’s consent to conduct separate bargaining with each trade union, the employer is obligated to faithfully bargain with each trade union without any discrimination.
  • Even after separation of the bargaining unit, a provision that provides the basis for establishment of a single bargaining channel by the Labor Relations Commission shall be adopted. 
  • The state and local governments shall encourage labor and management to freely select bargaining methods (depending on the company, industry, location, etc.) as necessary.  
     
• Prohibition Against Occupation of Workplace
   
  • To preserve both the employer’s right to manage the work facilities and the trade union’s right to strike, occupation of major facilities or parts of such facilities is prohibited.
     
• Extended Effective Period of Collective Bargaining
   
  • The effective period of collective bargaining is increased from two years to three years.
     
• Unfair Labor Practice
   
  • Pursuant to the Constitutional Court’s ruling regarding assistance of union expenses (Constitutional Court Decision 2012HeonBa90, May 31, 2018), the Amendment allows for the assistance of union operation expenses within a certain limit (exemption to unfair labor practice) as long as the assistance is not likely to infringe upon the union’s independent operation.