Korean Unions Unite Against Union Busting Privatization Agenda Of Park Geun-hye

Korean Unions Unite Against Union Busting Privatization Agenda Of Park Geun-hye
http://www.koreatimes.co.kr/www/news/biz/2014/01/488_149968.html
Gov't, state firm unions collide over reform plan

By Na Jeong-ju

The unions of public firms are moving to take a collective action against the government over the latter’s move to restructure poorly-managed, highly-indebted state enterprises.

The country’s two umbrella unions ― the Korean Confederation of Trade Unions (KCTU) and the Federation of Korean Trade Unions ― have set up a joint committee to assist the public firm unions.

“We will adopt a resolution concerning the government’s public sector reform plans after holding an emergency meeting on Jan. 23,” a KCTU official said. “We will discuss what action to take for the following week. Of course, a general strike and street demonstrations won’t be ruled out.”

The joint committee includes union leaders of the public firms. They reportedly urged the umbrella unions to “form a united front” against the government’s move.

The KCTU official claimed many public firms are now under mounting debts because they were “compelled” by the government in the past to participate in unprofitable state projects.

“The government is now passing the responsibility to state firms,” the official said.

The Park Geun-hye administration has placed the restructuring of state enterprises on its top policy goals.

It has increased pressure on indebted public firms to reduce their debts by selling assets, cutting benefits for employees, and giving up unprofitable businesses.

The firms must submit their own restructuring plans by next month, or their managers will be sacked, according to government officials.

On top of the blacklist are 12 firms.

They include Korea Land & Housing Corp., Korea Gas Corp. and Korea Electric Power Corp. The combined debts held by the 12 firms soared from 187 trillion won to 412 trillion won ($393 billion) under the previous Lee Myung-bak administration.