Employers` Group to Reject Labor`s `Excessive` Demands

The Korea Employers Federation said yesterday that it seeks to minimize layoffs in collective bargaining with labor, but will reject union demands on restructuring if they violate management’s rights.

The federation will also reject labor’s “excessive” demands for multiple unions at a workplace or wage payments for full-time union officers.

This was included in the pro-business body’s business guidelines for collective bargaining presented to a meeting of around 80 management representatives late last month.

“Companies should consider layoffs as a last resort only when faced with life or death. They should also strive to minimize the number of employees laid off even in the absence of other options,” the guidelines said.

Management will also introduce cost-saving measures such as encouragement of workers to take annual paid holidays, temporary breaks from work, and a temporary shutdown while trying to retain staff.

The federation’s member companies will ask unions to proactively support management restructuring to reduce excessive wages and benefits; accept flexible arrangement of employees; support management measures not to lay off workers including unpaid leaves of absence; and assist management’s divestiture, merger and outsourcing.

Conflict between employers and workers is expected, however, since labor has demanded that management first agree with unions on divestiture, merger, sales and transfer, or layoffs.

The guidelines urged a hard-line approach to the proposal of multiple unions and wages for full-time union officers, measures which are likely to take effect from Jan. 1 next year.

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