Changes and Direction of Industrial Relations in Korea: Before and After the 1997 Crisis
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The industrial relations of Korea had been characterized as a coerced peace under the state’s tight control. However, it began to change in the course of democratization process since 1987. The labor sector began to speak out their claims, and industrial disputes spread out dramatically. It resulted in rapid transition of capital accumulation system in Korea, and dragged national economy into a crisis in 1997. The IMF-led structural adjustment programs have drastically changed not only business practices but also industrial relations in Korea. In this process, the labor unionism failed to bring about the working-class solidarity for collective bargaining. On the other hand, the management took an opportunity to strengthen its grip against the labor. In the era of neo-liberal globalization, the state tends to withdraw its active role in industrial practice, and leave it to market mechanism. In this highly competitive business world, industrial peace is a necessary condition for a company to survive and growth, which benefits both the labor and the management. Korean industrial actors are still searching for a desirable formula for cooperative industrial relations.
Abstract
The industrial relations of Korea had been characterized as a coerced peace under the state’s tight control. However, it began to change in the course of democratization process since 1987. The labor sector began to speak out their claims, and industrial disputes spread out dramatically. It resulted in rapid transition of capital accumulation system in Korea, and dragged national economy into a crisis in 1997. The IMF-led structural adjustment programs have drastically changed not only business practices but also industrial relations in Korea. In this process, the labor unionism failed to bring about the working-class solidarity for collective bargaining. On the other hand, the management took an opportunity to strengthen its grip against the labor. In the era of neo-liberal globalization, the state tends to withdraw its active role in industrial practice, and leave it to market mechanism. In this highly competitive business world, industrial peace is a necessary condition for a company to survive and growth, which benefits both the labor and the management. Korean industrial actors are still searching for a desirable formula for cooperative industrial relations.
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