Regional Insurance Union Strike, Public Service Paralyzed

As National Health Insurance Co. (NHIC) faces criticism over financial rupture, increased insurance rate, and lax management, the Korea Society Insurance Union has gone into another strike after last year`s long-term strike. With the thriving union that has not lost any negotiations in the last 10 years, a corporation without any real negotiating power, and the Ministry of Health and Welfare`s insistence on maintaining the original conditions, the strike is likely to go into a long-term phase.

▽ Issues = The union made a 19 point demand in November 16 including promotion in proportion to the length of one`s service and reinstatement of those fired.

The corporation, however, responded on November 29, "Many of these points are difficult to accommodate." and expressed reluctance. The union`s demand for a 12.7 percent raise in wages was a difficult demand for the corporation in light of its finances. This also contradicts the corporation`s own employment insurance union`s resolution to freeze wages.

The corporation has its share of responsibility for this strike. The strike happened because the corporation failed to carry out the agreements made between labor and management on issues such as promotion according to length of employment, combined management of employment and regional operations, and other collective agreements. The corporation explained that it could not carry these agreements out because the Ministry of Health and Welfare had not given its consent.

A NHIC source said, "According to the health insurance law, `any changes in the corporation`s organization, personnel, and remuneration policies must be first approved by the Minister of Health and Welfare,` which means we have no real grounds for negotiating."

The union pointed to the Ministry for blocking negotiations and stated, "The Ministry is pressuring the corporation to refrain from carrying out the agreements between labor and management."

▽ Operation mishap = Although the NHIC has gone into emergency nationwide branch operations based on the management and anti-union employees, a long-term strike will paralyze a significant portion of company operations. A NHIC source said that 154 branch offices responsible solely for regional operations out of the total 235 branch offices nationwide have handled most of the civilian walk-ins in the two days since the strike, but have not even begun to manage the phone call requests.

▽ Civilian, NGO perspective = Yang Kil-Ho (36), company employee, said, "We are facing a debt of 1.8 trillion won by the end of the year. We should collect as much insurance payment as we and prepare for the fast, not running around holding a strike. It`s just too much to hold a strike especially at the end of the year when public discontent swells up."

Moon Chul fullmoon@donga.com