SOUTH KOREA COUNTRY REPORT
Based on the conference presentations
by Lee Young-Soon
Korean Women Workers Association United
Lee Jung-OK
Hyo Sung Women's University
SOUTH KOREA'S EPZs encompass only a small percentage of the country's manufacturing plants and employ relatively few workers. Employment levels reached their peak with 41,518 workers in 1987 and subsequently fell to 21,900 in 1991.
Korea's independent trade union movement (KCTU, or Korean Council of Trade Unions) has grown in size and power since it was established in 1987. KCTU members have successfully organised and won large wage increases. At the same time however, industrial restructuring has taken place and has had profound effects on women workers. The tenuous situation for the women working in the EPZs reflects the general trends and conditions for Korean women workers, but magnified.
Korea's large companies have shifted investment to heavy and high-tech manufacturing like ship-building and chemicals. Job opportunities in garment and semi-conductor factories have been shrinking.
Many smaller companies have closed their domestic plants and relocated to other Asian countries with lower labour costs, particularly China, Vietnam and Indonesia. Meanwhile, large companies have invested in factory automation, swapping machines for people.
Women who lost their manufacturing jobs are facing difficulties finding new work. Many have been forced into the informal sector and are now stall keepers, vendors, and home-based workers. The decreased opportunities for women have weakened the power and participation of women in the labour force and in the trade union movement.
Women's power in the manufacturing sector is further weakened by the use of part-time, married workers.
In 1989, approximately 50% of married women were in the labour force. As of 1991, 74% of married women were in the labour force.
To avoid paying higher wages, companies have increased their use of part-time and married women workers instead of employing full-time women workers. They are more difficult to organise and are typically not active in the trade union movement.
Companies have also increased their use of foreign workers. Approximately lOO,OOO foreign workers,
classified as "trainees," are imported into the country so that they can be paid substandard wages. They are usually hired for the least desirable jobs. They are not part of the trade union movement simply because they are not organised. They are not entitled to regular workers' benefits and have no legal protections. Only very recently has the govemment decreed that they must be entitled to full compensation in case of industrial accidents.
Changes in the political situation have had an unexpected effect on the labour movement. The new "civilian" govemment has been somewhat efective in getting workers, especially white
collar workers, to "cooperate" in order to maintain global competitiveness.
Although manual labourers have continued to demand higher wages, white collar workers are beginning to accept the idea that if they demand higher wages the nation will lose its global competitiveness and they will ultimately lose their jobs.
Under the military regime, all sectors of labour worked closely together against the government. But since 1992, when the transition to the civilian government occurred, workers have been less united than before. The KCTU is working to rebuild and revitalise the democratic trade union movement so that new strategies for struggle can overcome these challenges.
As investment in light
industries declines and
companies relocate in search
of lower labour costs, full
time job opportunities for
women workers are few and
far between. Adding oil to
the fire, employers are using
more and more part-time
workers and foreign
"trainees. "
AT A GLANCE
FREE EXPORT ZONES
Iri
Masan
Industrial Estates (29): Inch-on, Pusan, and Goomi
MINIMUM WAGES
US$ 13,94/hour (applies to workers inside and outside the EPZs)>
UNEMPLOYMENT RATE
2,0% (nov.1994)
POPULATION
44,7 million
UNIONSATION RATE
1,667,000 415,6%7 419937
17,5% 4MEN7
8,8% 4WOMEN7
ECONOMIC GROWTH
7,3% (1995)
PER CAPITA GDP (PPP)
US$ 9,810
INFLATION RATE (CPI)
4,5%
FOREIGN DEBT
US$ 54,2 bilion
They Chew Us Up And Spit Us Out
In December 1991, a 23-year old woman who worked in a shoe factory in Pusan fell to her death from the factory's veranda.
Amonth before the woman's death, the factory forced workers to
wear a cloth with the slogan "saving
cost of operation and prevention from absence" across their chests.
'Let's die together if we cannot attain
the target" was written on the factory's blackboard."
Most telling was the following entry in the young woman's diary: "Our work has been intensified day
by day and the company often
threatens us by saying that they will
transfer the plant to another country.
I don't know what to do because I am very tired".
The "movement to work 30 minutes more" was a nationwide
productivity improvement campaign
to help the sluggish shoe industry.
In September 1993, I visited Pusan. More than 60% of the shoe factories in Korea and more than 80% of shoe workers are concentrated in the area. After 1990, however, the shoe factories began close, resulting in serious unemployment problems for the women workers.
The number of workers in MASAN EPZ, the second EPZ in Asia after Kaohsiung in Taiwan has also dropped dramatically.
In 1987, there were 36,000 workers. In 1993 there were only 17,000 (a 53% reduction in workforce).
The Korean shoe industry holds the largest share of European and U.S. trademarks. However, the number of production facilities has decreased from 302 in 1990 to 225 in 1992. The number of workers has also decreased from 135,000 to 92,000 in the same two year period (a 32% drop). Most of the plants moved to Indonesia and China.
The same companies that once worked their employees to death are now rnoving their operations to lower cost sites.
A typical case is the Samhwa Shoe Company, one of the five largest shoe companies in Korea. Samhwa laid off workers, leaving 8.000 workers in Korea, and opened production plants in Indonesia.
The women who have lost their jobs in these situations are facing difficulty finding new employment.
It .s especially difficult for middle aged women who are less educated to find jobs, even in the small, local factories that have the worst working conditions. Many of them have been forced into the informal sector, where they earn money as stall keepers, vendors, and home-based workers.
(Based on a letter to AMRC from Michiko Hiroki, CAW Exocutiv Committee)
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