Investing In Seoul
Improving Labor-Management Relations
Based on a common understanding of the crucial importance of labor-management harmony as part of Korea's FDI environment, the country's labor and management circles and the government have come together to launch joint efforts toward more stable labor-management relations.
As a result, these relationships in most workplaces across Korea have become increasingly more cooperative. A growing number of the negotiations which take place between labor and management concerning wages, and other types of collective bargaining, are now being successfully concluded without strikes or other disruptions ensuing. Many companies have also begun issuing a "labor management cooperation declaration", a commitment between employers and employees to pursue mutually beneficial relations.
During the first half of 2007, the number of working days lost to strikes fell by over 50 percent compared to the corresponding period in 2006. Meanwhile, the Korea Federation of Labor Unions is actively working on enhancing the image of the labor-management environment in Korea and improving foreign investors' perceptions on the issue, by taking part in investment promotion sessions, both in the U.S. and Japan. This is an initiative that promises a bright outlook regarding this concern.