Structural Adjustment, Lay-off, and Labor Rights for Women

Lee, Heh-soon (head of women's department of KCTU)


  1. Structural adjustment for lay-offs

    Women workers of the KFSB were shouting their demands in the first rally for women's employment security and women's umemployment prevention

    Structural adjustment is now operating in full-swing in the workplace.. At Hyundai Motors the conflict between management and labor is one regarding laying-off workers or not. However, basic principles such as the attempt to avoid lay-offs and engage in sincere negotiations with trade unions are being distorted,. Thus, we doubt that the current restructuring plans will lead to reform.

    Until late July, 873 cases involving 1,610 workers were judged as being unfairly dismissed, amongst those reported to the labor committee or those sued in local labor offices. The figures are 4.5 times higher than those during the same period last year.

    If unfair labour practices such as failure to pay back wages are included, the figures total 55,216 cases which are two times higher than those last year (HanKyoReh Daily, 19 August, 1998). Under the pretext of structural adjustment companies are engaging in lay-offs and unfair labor practices. In this current situation, democracy in the workplace is being seriously attacked.

    'PARADISE,' a paradise of lay-offs

    Let's look at the case of the Paradise Beach Hotel to examine how lay-offs have affected workers. The Hotel laid off 320 workers (about 60%) out of the total workforce of 520 between February and March this year. Management simply waved off dismissed workers and then re-hired the same dismissed women householders.

    Protests by the Pusan Women's Association and active actions taken by the workers managed to stop the illegal dismissals, but their contracts will expire in February 1999. Conflicts over the dismissal of 100 workers still remains unsettled, so they are continuing their protests by setting up the dismissed workers' re-employment struggle committee.

  2. Cutting women's jobs by shutting down female-dominated departments!

    By carefully looking at individual workplaces, we can see that women's jobs have been reduced by company restructuring plans that shut down female-dominated departments.

    Shutting down a female-dominated department at the Korean Federation of Small Businesses (KFSB)!

    The first incident occurred at the Korean Federation of Small Businesses (KFSB) whose trade unions are affiliated with KCTU. Last June 25, its detailed restructuring plan targeted women workers who composed of 20% amongst 80 workers (including 23 contractual workers whose contracts were expired).

    They closed the Dept. of General Affairs where many women workers are concentrated. This means that 91.8% of women out of the whole workforce of 61 women were targeted for lay-offs. Moreover, the company planned to re-employ some of them as contractual workers.

    The KFSB divides workers by tasks: general, specialised, clerical assistant, and technical. 99% women workers are ranked in the lowest division. The clerical assistant division, for example, is made up of 33 women and one man. Clerical assistants do work for the general division as well as manual and miscellaneous things.

    The company claimed that 'women are typists just serving coffees, and answering telephones.' Just because they are women, they have to work the lowest level jobs under harsh and discriminatory working conditions. Now they are also being unfairly dismissed.

    `The trade union protested the one-sided restructuring. They argued that no negotiation took place with the union nor did management attempt to avoid dismissals. Thus, they went on strike. On last 29 July, after a 40 day struggle, an agreement was eventually reached.

    In the process, the union agreed to close the clerical assistant division and all the women workers were retired. Currently, some of them are protesting against their status of being put on the waiting list.

    Korea Telecom cutting public services

    Korea Telecom has already started to charge customer for its free-call services, in spite of strong resistances from its trade union and NGOs. The trade union carried out struggles against the policy.

    Those who usually use the services are handicapped, soldiers, students studying away from home, and unemployed householders. In addition, it is not right to change its policy due to increasingg profitability, especially when many people have been negatively affected by a flood this past summer and it is a public corporatation. Since it is difficult to argue that restructuring has only affected women, I think the union's approach is more appropriate to handle the issue.

    In the jobs involved, an overwhelming majority of workers were married women workers (231 married women work amongst 239 workers). Initially, the company promised that they would reallocate tasks after a 6 week training period, but after negotiations with the union, the training duration was shortened to 4 weeks.

    However, since the education sites are in Kimhae and Najoo which is quite far from Seoul (and they have to stay in dormitories for the training) and all of their reallocated jobs cannot be located in Seoul, it is expected that all of these married women will not continue to work.

    Hence, the trade union should raise the issue of women's unstable employment, as a consequence of the wrong decision made by the company in their demands for reviving the free-call services.

    'Hyundai Auto' workers raged at the policy for subcontracting its canteens

    Last 24 August, the management and trade union agreed to with the government's suggestions that laying off the total number of 170 women workers working at its canteens should be minimized. For the last 10 years the trade union has stopped the company's attempts to subcontract the operation of its canteens.

    The working conditions of subcontracted canteens are very harsh. Their basic wages comprise only 50% of those of workers who are employed in canteens of the company. Laying off women workers working at the canteens means that the company will most likely subcontract canteen work. Further, the company will use this as an excuse for future lay-offs in industrial relations.

    These 170 women workers stood united until they obtained the victory. The trade union also kept to its basic principle that their employment should be maintained. In the finalized agreements the trade union shall run canteens for the following 5 years; the company shall provide compensation pay equivalent to 9 month-wages, continue paying their wages until the ownership is transferred; and the company shall put its efforts to employ workers and their spouses, who were already were retired by force.

  3. Turning point between rises and falls of women workers' basic rights

    Restructuring adjustment in Korea has just started. By August the government's plan to finalize public restructuring and second financial sector restructuring will take place. Then, the government will carry out a series of plans in relation to restructuring adjustment: to decide conditionally approved banks and restructure five chaebols; to improve management styles in security companies; and to enact and amend laws and acts related to restructuring in the National Assembly.

    In this process, basic workers' rights and our livelihood are projected to be illegally threatened. Our family systems will be torn. Our future will be lost, if we cannot firmly stop illegal attempts by the capitalists and structural changes toward democracy in our society cannot be achieved. In addition, how strongly women workers' rights at this point can be defended will be a determinant of status of women workers in the future.

    We live in an era in which labor rights, a basic human right are largelybeing intimidated. We also live in a world in which endless competition and mass production is intensifying and the poor classes are expanding. How can we change the values and aims of this era? Can positive points of feminity actively contribute to changing his current economic turmoil?

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Activity diares of the Women's Unemployement Prevention Center in Pictures

Establishing the Women's Unemployment Prevention Center and Announcing the job seekers' registration campaign (June 9, 1998)

Establishing the Inchon Women's Unemployment Prevention Center and Opening its shelter (July 8, 1998)

Organizing the first rally for women worker's job security and women's unemployment prevention(July 9, 1998)

Solidarity night with unemployed women(July 24, 1998)
in the Women's Unemployment Prevention Center of the Seoul Women Worker's Association

Meeting Days with job-seekers and with women householders (July 28, 1998)
in the Women's Unemployment Prevention Center of the Pusan Women's Association

Organizing the second rally for women workers' job security and women's unemployment prevention (August 18, 1998)

Choi, Soon-Im, a head of the counselling Dept. counselling with a job-seeker(right)

Posted by KWWA
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Establishing the ACTION CENTER FOR Women's Unemployment, a shield of the female unemployed from the IMF

Choi, Soon-Im(head of counselling dept. of the Action Center for Women's Unemployment, annexed to KWWAU)


Many women workers in unorganized small companies are being laid-off and they have not received their backwages, Since many of these women workers are heads of their families, they face extremely difficult situations.. On June 9, 1998, the Action Center for Women's Unemployment and five(5) regional branches in Seoul, Inchon, Pusan, Kwangju and Ansan were established as an annex to KWWAU in order to publicize the seriousness in women' unemployment and to encourage the government to make pro-active policies for women workers.

These Action Centers for Women's Unemployment provide practical assistance to women workers, through a variety of programmes such as job counselling, information provision, training, surveying activities, and medical assistance. I would like to look for future directions by examining the activities of our centers over the last three months.

  1. Announcing the 'job seeker registration campaign'

    "What is a job seeker registration ?"
    "Does the Ministry of Labour receive job seeker registrations ?"

    Women seldom know that the Ministry of Labor, labour banks, and all district offices receive registrations for job seekers. Amongst the job seekers who visited the Action Center for Women's Unemployment in June, only 11% had been registered as job applicants at their district office.

    Although unemployment is a hot issue across Korea, women are not classified as "unemployed." They are often considered as those who simply give up finding jobs and as part of the economically inactive population. Thus, offficial statistics show that the women's unemployment rate is lower than those of men.

    However, women's jobs are decreasing faster across all sectors, relative to those of men (while in July 1998 the employment rate amongst men decreased by 5.3%, women's unemployment rate decreased by 8.2%. Amongst the economically active population, the male unemployment rate increased by 11%, but the female unemployment rate decreased by 4%). This disparity between official statistics and the current unemployment situation makes it extremely difficult to grasp detailed situations and women's unemployment trends.

    We believe that unofficial statistics should be dramatically changed. Therefore, we launched a registration campaign of women's job seekers, to push the government to establish and carry-out systematical policies for preventing women's unemployment. The campaign will encourage the government to provide proper public works for women which are supported by the government for a short term. In this sense, women job-seekers and jobless women will be more encouraged to survive the unemployment crisis with stronger wills.

  2. Organizing rallies for women workers' job security and demanding the government to establish women's unemployment prevention

    "Set up active policies for maintaining employment."
    "I feel very stuffy, after I have been unemployed for several months."
    "The government should establish and integrate long-term, stable employment measures."

    Last Augst 18, 200 women held a rally in front of the headquarter of the ruling party for 'employment security for women workers and called for measures for unemployed women.'

    By organizing these street rallies once a month, the Action Centers for Women's Unemployment are demanding that the government establish women's unemployment measures with the Federation of Korean Trade Unions(Announcing the 'job seeker registration campaign'FKTU), Korean Confederation of Trade Unions(KCTU), Universities' Coalition for Obtaining Women's Rights to Work.

    We also are pushing the government to implement practical policies, publicize issues related to unemployment amongst women, and respond pro-actively to recent issues and problems. Recently, the government started to implement measures for unemployed women, establishing talks with jobless women, providing jobs suitable for women at the second level of public works, and setting up job training courses for unemployed women householders. These changes in the government' attitudes were brought about by our active and strong activities.

  3. Carrying out active counsellings with the women jobless

    1. Counselling

      "Please help me to get any job. I can do anything."
      "I feel very stuffy, after I have been unemployed for several months."

      These complaints are those often heard when unemployed women visit our centers. All of our Action Centers for Women's Unemployment which include 5 regional centers have taken a total of 1,312 counselling cases since our establishment in July.

      Unemployed people accounted for 45.9% (337 cases) of 735 cases in June and increased to 50.2% (294 cases) amongst 581 cases. This shows that a massive number of women have been laid-off, largely attributed to dismissals and back pays.

      Employment rate of housewives was 31.9% in July. Housewives are mostly women over the age of 40. Many housewives are looking for a job to help made ends meet due to unemployment of their husbands. However, it is difficult for them to find jobs because most companies require that women are under the age of 35.

      The newly unemployed experience the same problems, because lay-offs and dismissals are very prevalent amongst workers. In particular, female university graduates are put in more serious difficulties. Current employment tendency shows that 'young workers with education levels of high school matriculation who do not mind low wages without any bonus' are favored.

      Amongst them, jobless women householderss are on the most desperate edge. They constitute about 20% of the total number of the jobless (according to statistics collected by the headquarter of the Action Centers for Women's Unemployment.

      They are monthly tenants (Korea has yearly rental system. too), and their owners urge them to leave their accommodation because they have not been able to pay since they became unemployed. Most of jobless women householders, between the ages of the late 30s and the 50s, face difficulties in finding jobs. Practical policies by the government are urgently needed.

    2. Policy suggestion activities

      Job-seekers are abundant, but very few companies are looking to hire them. Most jobs available are in the retail sales industry for high-priced goods. These jobs are not stable enough for these applicants in practice.

      The Action Centers for Women's Unemployment demanded that the government follow regulations in terms of increasing the number of suitable jobs for women and detailed regulations for participants in the public work scheme: only unemployed people who experienced previous unemployment can join the scheme; they can apply for it three months after they become unemployed; participants in the program at the first level cannot join the second level public work program.

      After our demands, the government changed its polices so that jobs suitable for women such as 'workers for children from low-income family' and 'assistants for women's welfare' are developed, and participants in first-level public works are allowed to join the second-level program.

      In addition, unemployed women mostly believe that they cannot be not registered if they receive unemployment funds. Many are even not aware that the government receives registration forms at all. According to our analysis of employment counselling statistics given by the Action Centers for Women's Unemployment from June and July, 11 % (81 cases out of 735 counselling cases) got jobs in June and this percentage increased to 21 % (126 out of 586 cases) in July after carrying out the women's registration campaign.

    3. Meeting Days with job-seekers

      "I'll hike together this time. I feel very bored when I am alone at home."

      Many women express this sentiment after their unemployment becomes protracted. This occur more easily when they are alone than with when they are with others. Our Action Centers for Women's Unemployment carry out a variety of educationsal programmes under the name of 'a meeting day with job-seekers.' The first project, 'meeting of women householders' is conducted in every center.

      The Pusan Women's Association, one of our regional organization also carries out meetings with jobless unmarried women. We plan to establish meetings with all unemployed women as well as women householders.

    4. Medical assistance activity

      Unemployed women face diverse hardships. Among them, women householders are a group affected the most seriously. Their living circumstances are getting worse. They cannot take care of their health properly, so their families face worsening health problems as well.

      However, in regards to this issue, the government hardly does anything to support them. Our Women's Unemployment Prevention Centers perform health assistance programs with progressive medical practitioners' associations, for women householders and their families to maintain their health although it is still at the minimum level.

    5. Other information provision activity

      'What's that?' 'Is there something that the government can do for job seekers?'

      This is a common reply when I ask people if they know about public works. Very few job-seekers reply "Public work projects are for grammies. Aren't they?" Few applicants know what the 'temporary livelihood proctection project' is, which proves that the publicities involved do not function well.

      Unemployed women know little about the government policies on unemployment or how to apply for employment projects. Action Centers for Women's Unemployment provide various information such as vocational training, loans, and employment securities regarding how to apply for public works or the 'temporary livelihood project,' and how to reduce lunch fees for children at schools.

  4. The government's policies for unemployed women should be reformed

    1. Affirmative policy-making and executive power should be strengthened for maintaining employment security.

      Since the establishment of the Action Centers for Women's Unemployment, the government announced that the coverage for employment security will be expanded from October. The government prepared policies for unemployed women such as subsidies for promoting employment for unemployed women, assistance funds for re-employment for jobless women householders, and some job provisions. But these are not sufficient.

      A much higher number of women workers are being fired from the jobs created by the government in the public sector. The government has decided to upgrade subsidies and assistance funds for maintaining employment through reforming the Employment Insurance Act. But it is doubtful how seriously the management can carry out reforms.

      A small amount of subsidies cannot easily achieve this because most capitalists regard restructuring as equivalent to employment restructuring. If massive lay-offs persist, the government's policies such as doles and vocational training programs will face limits. The dole system, public works, and job training programs should be adopted as additional, under the conditions of maximized employment.

    2. Adequate policies and measures should be set up for small and medium sized firms and irregular workers.

      62.7% of women workers are employed in small size whorkshops with four(4) workers. These women confront wage delays and unjust labor controls and are being laid-off under the pretext of restructuring. There are many unregistered workshops amongst these small size factories. The government should require them to registrate by providing benefits such as tax exemption and special protection for small size workshop to ensure that employment insurance is properly given.

    3. The government should prepare long-term, secure and comprehensive unemployment measures.

      The working class has many, many concerns and worries, even though they can join the scheme of public works. Public works only ensure employment for four months at the most. It is not a long-term and secure job alternative. The scheme of public works should be reformed to provide long-term employment for those who can not find jobs.

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Korean Women Workers Associations United, Headquarters of "Action Center for Women's Unemployment "is Established


On June 9th, KWWAU held the opening of the headquarters Action Center for women's unemployment. Currently, the women's unemployment problem has been hidden behind the overall unemployment problem and has not received its due notice as a social problem.

The government also has no policy for this problem. Women workers have been shut out of the government's unemployment policy because the majority of women workers work in places where there is no employment insurance and are classified as potential jobless.

Therefore our associations headquarters of action counter for women's unemployment has been formed to actively confront the women's unemployment problem and to demand for a government policy on women's unemployment. The headquarters of the Action Center for Women's Unemployment has a central office and 5 regional brenches which will operate simultaneously.

The Action center's first project is the movement for 'employment registration for the female unemployed.' It was selected to reveal the severity of the women's unemployment problem and to urge a government policy regarding it.

Until now, jobless women have not registered or have not sought a job actively even though they are willing to work. But now the female unemployed intend to clarify that we too are unemployed, to reject the 'women to the homes' ideology in times of danger, and to relentlessly pursue the social value of equality that has been the product of our efforts so far.

In addition to the movement for employment registration for the female unemployed, the headquarter of Action Center for Women's Unemployment is currently offering information on jobs and employment, counselling on women's interests such as unjust layoffs and delayed pay, monitoring the local autonomy's employment policy with the government, and preparing research on the actual conditions of families with a female head of family.

Posted by KWWA
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Phone of Equality

Lee Ju-Huan (KWWAU Head of Education)


Unpaid wages; illegal and unjust layoffs due to bankruptcy and discontinuance of business; analysis of 348 recent(Jan-April) calls to the 'phone of equality'

This is a summary of the counselling calls that were registered in the Seoul, Inchon, and Pusan areas at the 'phone of equality,' a counselling agency that specializes in women's employment. 348 total calls were registered at the 'phone of equality' (repeat calls and employment advice calls are excluded).

188 calls which reflects the highest percentage of calls, were about unpaid wages. Of these 188 calls, 91 calls (48.4%) were about unpaid wages due to bankruptcy and discontinuance of businesses, displaying the seriousness of effects from the IMF.

Calls about unjust layoffs were the second highest, representing 26% of the calls. Regarding the different aspects of unjust layoffs, layoffs due to the reduction of the entire work force took up the highest percentage with 28.6%. Of these 73.1% were in the form of advised retirement. In 1998 calls related to employment rose sharply while calls related to discrimination (3.7% discriminatory promotions and pay) and sexual harassment(3.7%) were relatively down.

Excluding callers who chose not to answer questions, calls from married females numbered around 70%, while calls from the unorganized labor force sector amounted to 78.6% of the total calls, showing that the suffering of married female workers in the unorganized labor force sector is very serious.

Also, dismissed women who are heads of their households have a much tougher time making a living. The absence of any countermeasures to combat female unemployment leaves them with no other options. For 2 months (from March to April) 422 job applications were submitted to the employment centers in the areas of Seoul, Inchon, and Pusan, showing the will of the women to find jobs.

However, there is still very little work and it is tough to find a job. The situation is even worse for married female workers over 40 who have lost their jobs, especially because the recent trend is to employ women under 35 to work as waitresses, domestic workers and nurses.

  • Examples of the types of counselling calls

    1. Unpaid wages due to deteriorating businesses. Intentionally unpaid wages on the rise

      Because of our country's subcontracting system and also because small factories usually have very little capital and are usually subcontracted, unpaid wages are not an unusal phenomenon. However, the situation has become much more frequent and serious.

      Chronically delayed payments by companies are threatening the livelihood of poor workers, and intentionally delayed payments by corrupt, self-interested management are also a problem.

      I am 35 and have spent 10 years working at a sewing machine. I left my 2 children at a nursery and entered a factory with about 20 workers. I had to quit because the company would not pay me for over 2 months. The company kept on telling me to wait, saying the company was in a bad situation. Because of the high cost of the nursery I thought about staying home to save money, but my husband, who works and gets paid by the day, began to get less and less work. I just could not sit around while the situation got worse and worse. So I got another job but again the company would not pay us for over 2 months. Even though we thought about organizing ourselves to demand our pay, nobody wanted to take the risk at a time when it's tough to get another job. We've just been worrying. Before, we could take breaks and talk to each other which partially relieved our stress, but now the atmosphere is so cold that everyone just works.

      I've worked for 3 years at a company in Masan. Of the 56 workers, 10 workers have been laid off and 2 have voluntarily retired. The company has paid me only for being fired but has not paid the retirement pay for over a month. Is there any way I can get it?

      My company shut down 12/28/97 and went bankrupt 01/05/98 but changed the name and president and opened up another company close by with 80 of the 130 original workers and is currently in operation. I have not received a month's pay, incentives or any retirement pay. Can I get it?

      I work at a manufacturing company with 6 workers. The company's in bad condition so we get paid only about once every 2 months. I have worked for 4 months without pay and can't do it any longer. I know the situation of the company but I just can't work without pay. Will reporting it do any good?

    2. Unjust layoffs and unjust labor practices have become much more diverse in form

      Counselling revealed the fact that workers did not know the exact legal standards for layoffs. The legalization of dismissals does not necessarily mean that anyone can be fired at will, but the reality is that anyone can be fired with just the words, "The company is in danger."

      Especially in small factories and places without labor unions, the method most often used is to force workers to retire. Since they are retiring for 'personal reasons,' they are not eligible for unemployment pensions. If a direct discharge is difficult, workers are subject to illegal labor practices such as downgrades to irregular work and changes of job positions.

      I am a 62 year old female worker who entered a sewing factory which employs about 55-60 workers. I was 15 days short of working a year when I injured my arm on January the 5th and returned to work on the 4th of March. But I was fired on the 14th of March, I was told it was because I was too old and that there were already too many workers. My monthly pay was 550,000won but after deducting retirement funds and medical insurance, my actual pay was about 480000-500000won. I haven't received any pay for my last ten days of work, and they said that I wasn't eligible for retirement pay.

      H company employs about 300 workers and the 20 female workers work at accounting, calculation, and clerical work. Suddenly the company told us that all female workers would do contract work from now on and that we could leave the company if we didn't like it. They also told us that male workers who get low evaluation points would be contracted workers. But isn't it unjust to turn all female workers to contract workers without any provision?

      I work at a sewing company and a few months ago, because the company was in trouble, I started working extra hours from 9 to 10 p.m. without extra pay. There used to be about 30 workers but now 15 do all the work. The president doesn't hire anyone new workers. My child is still young and it's not easy. Even the president's family comes to work because the company is in danger and I'm confused as to what to do. What should I do?

    3. Unjust discriminatory layoffs still going on

      23 female workers at the Seoul research center and the Kwangju plant of XX electronics were forced to retire without prior notice. Most were married including 2 who were on leave because of pregnancy. They tried to buy them over with promises of 3 months pay and bonuses and attempted to buy out and even threaten pregnant workers, stressing that they were pregnant. The female workers who were notified collectively retaliated, reported it to the Ministry of Labor and even sent the story out on the newspaper but can't seem to find a solution to their problem.

      I work at a communications company and the company reduced 20% of it's labor force. 3 people in my division were layed off and all were women. I was 9 months pregnant so I couldn't do anything. Can I receive unemployment pensions?

    4. Female heads of families lose their jobs! Livelihood endangered

      Ms. Kim, who lives in a rental apartment and is raising 2 disabled kids, is 40 years old, divorced, and the female head of her family. She leads a hard life. Her daughter is in the 6th grade. She is handicapped and her brother is suffering from cerebral palsy. He is in treatment at a rehabilitation center. Ms Kim has worked diligently at companies that make buttons, towels, and accessories to make a living. But 3 months ago when she moved to her current apartment, she had to quit her last job. She hasn't been able to find another job for months since the IMF struck last December.

      Ms. Jang is 48 years old and the female head of family. She lives in the southern part of Inchon. She lost her husband 20 years ago and currently lives with her daughter who is a college freshmen. She worked at H department store in the health food corner as a dispatched worker until she was fired in November '97, She is a high school graduate who at one time attended a broadcasting and communications college. She has worked at various sales positions at Daewoo electronics, department stores, and personal businesses but even though she did her best she cries out that she has not been able to find a job because she is old and has been married.

  • content of counselling:

    We advised the workers not to turn in their retirement papers and to hold out until the end and reminded them that the will of the individuals and the collective action is what is crucial. We registered a complaint to the female labor policy division of the Ministry of Labor as a case of 'sexually discriminatory and unjust layoff.'

    We reported this to the personnel division of Daewoo electronics and started to phone in with protest calls. Then, management announced to the workers a 3 week, long-term education session and pressured the workers to retire. The workers were told that men are also going to this session but it wasn't planned and furthermore, they pressured female workers into a decision between a long-term education session or retirement even though management knew that most of the women were married.

    This was a plain act of unjust labor practice and a sexually discriminatory one as well. We reported these facts to the local labor supervisor and demanded that management change it's policy.

  • method of counselling:telephone and interview
  • result and evaluation of counselling: telephone and interview

    The Ministry of Labor ordered management to withdraw it's order for an education session and it's discriminatory policy and management relented. The result was due to a combination of the worker's will to fight to the end and the sincere attitude of the local labor supervisor. But we are sorry to say many couldn't withstand the tough process, gave in, and turned in their retirement papers. Only 7 female workers got their jobs back.

 
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The Personal Life Story of a Woman Worker Activist
- Young-Ju Shon, General Secretary of Seoul Women Workers Association, is taking a sabbatical year after working 8 years in the women workers organization -

Min Na Park(Editorial staff of Seoul Women Workers Association)


 Much time has passed and the world has changed. The Seoul Women Workers Association is also making a change. It has introduced a sabbatical system in which staff members are eligble to take a sabbatical year after working 7 years.

The first person to benefit is Shon Young-ju, the general secretary of the Seoul Women Workers Association (SWWA). Although the SWWA is always short of hands due to their heavy workload, Son Young-ju will leave the organization for one year to take her sabbatical.

She has always wanted an opportunity to take a break from the demanding pace of her work life in order to recharge and rejuvenate herself. Now, she has that opportunity. Although she feels somewhat apologetic when her colleagues congratulate her since she knows that they, too, would benefit from a sabbatical, she cannot help but smile.

  • The adolescence of the sum jin river swot

    I met with Shon Young-Ju and looked at the personal statement she wrote at the age of 34. She has fond memories of her childhood. She grew up in a rural village in the mountains until she was six years old.

    She lived in a house on the Kyung Nam Ha Dong hillside along the Sum Jin river. Many big and small toads used to jumped across the large yard behind her house. She remembers the time a snake crawled over her foot as she stepped out of her house. Startled and horrified, she did not move at all and the snake simply slithered away.

    She also remembers suffering each time she had to go to the toilet. The toilets in mountain villages used to be raised above pig pens. Everytime she had to shit, she looked down and saw pigs grunting. When she reflects back on her childhood memories, she remembers them like a series of black and white photos. Her childhood is filled with many memorable experiences that have helped her endure struggles and hardships later in life.

    Shon Young-Ju was an exemplary student throughout elementary school and high school. She studied hard and had a good personality. Unlike most of her peers, she was not interested in pop songs or folk songs. She had a difficult time expressing her emotions to others and she often poured her heart out to her diary. In the 9th grade, she distinctly remembers the worries of one of her teachers.

    She and her best friend had been close since elementary school. They spent much time together and went everywhere together. Her teacher thought that she and her best friend were lesbians. So, the teacher acted like their shadow, constantly following them around. Their friendship almost ended.

    She liked drawing and she received many awards. She was also interested in Korean Studies, especially in ancient writings. In 1984 she was admitted into college, where she started studying Chinese characters. In college, she worked for Jung Jung Hun (a women's magazine) and began studying problems regarding gender and society such as sexual discrimination which were somewhat distant from her previous interests and concerns.

    She traces her deep-rooted interest in and affection towards the problems of women to this period. Much of her existing knowledge strictly came from the things that she was taught in school. She even remembers the day when she attended school in tears, grief-stricken over the death of the former president Park Chung-hee.

    For her it was hard to understand the anti-social resistance consciousness of her friends or the older students. Ironically, she started studying social science in order to change their distorted viewpoint. As she was telling me this, she laughed.

  • The meaning of her tears due to Park Chung Hee's death

    She knew very little about society; however, through her experiences she began understanding the world very differently. During November of her third year, she joined a demonstration held in the street to protest labor abuses and remind others to remember Chun Tae-il's spirit and his struggles.

    She was arrested and taken to the Noryangjin Police Station. They brutally assaulted her and beat the soles of her feet a hundred times. After 4 months, she was released from jail under "house arrest." Whenever she remembers the inhumane violence and brutal treatment that she endured during her months in jail, she shudders. However, her imprisonment made her stronger.

    Her parents also began to understand their daughter better while watching her struggles in court. After she was released, she worked actively towards creating a women's association that promoted the need for an independent women's association in school. She poured blood, sweat and tears towards this endeavor.

    However, even in the student movement, patriarchal ways of thinking were deeply rooted in students' consciousnesses. Most of her female comrades quit. Many left home to live by themselves. They struggled to take care of themselves.

    Lighting the coal of the briquet fire required too much energy and strength. Thus, many of the students who realized how much energy it took to live together and away from home quit. But, even though they gave up, she continued to work in the women's organization. During this time, she endured much physical, mental and emotional pain.

    One day while attending a speech given by Baek Gi Wan, a human rights activist, at Boramae Park, her parents and her two brothers came looking for her. They found her at the park and forced her to come home, putting her under another "house arrest" but this time one which was ordered by her father.

    Her father told her if Roe Tae Woo becomes the president, then there is no need for her to continue participating in the student movement. Roh Tae Woo is a common man, like him, so there is no need to continue fighting against the government. After Roh Tae Woo became president, she was imprisoned at home. Although she was stuck at home, she used this time to rest, reflect and reorganize her thoughts.

    During her entire fourth year, she did not work in the students association. With graduation ahead of her she felt burdened to move on to her next step - a working site. At that time she was more interested in rural, agricultural district areas and villages than the labor movement.

    She wanted to bring the problems and issues of women to the public. Thus, she spent one year working in a publishing company specializing in publishing books called "Deung eh" about women problems. When she looks back upon that time, she sees it as a time in which she was preparing to go to the work site.

  • Worries of a student activist worker

    She started working at an electric subcontracting company. 70 total workers including her were employed at this company. She and one other person were the only single workers. All the other workers were married. Meeting her married women co-workers gave her an opportunity to rethink many problems related to women workers. Her work experience has helped her in her later work at SWWA.

    However, working in a site where she had no organized connections was extremely difficult and lonely. For the first 6 months she could not get close to anybody. In addition, the work was physically tough. She began questioning her intentions, her commitment and even her politics.

    Perhaps like the mistakes of many other student activist workers, the thought that she had chosen this road to bury her petty bourgeois nature rather than to settle down as a worker distressed and shamed her. Later on, she even started being suspicious of herself thinking, "What if I don't see the workers as human? What if I start to see them as mechanical and I fail to help them see themselves as the main force of the revolution?"

    This thought ailed and shook her. She cried every night. Finally, she left the work site, almost running away. After leaving in such disarray and distress, she lost all her self-confidence. She felt defeated.

    She regretted participating in the movement, though she could not possibly imagine what else she would have done. However, through persistent self- examination, reflection and a sincere effort to overcome her problems, she started concentrating again on the specific problems related to women workers and rejoined the movement.

  • Breaking into the Seoul Women Workers Association!

    In November 1991, she wrote her own letter of introduction and started working at the Seoul Women Workers Association. For the past eight years she has devoted her time, energy and commitment to the SWWA. She feels that the decision to start working for SWWA was the best choice she has ever made.

    When she started working, she still felt trauma from her experiences on the work site. However, from the very start, there was something about SWWA that made her feel warm and at ease. She also settled in well with the work she was given. Personally and privately, she continued to think about what specific contributions she could make to the movement.After a year, she was given work regarding educational planning. She organized the first program on the nature of problems related to women.

    It was held in one of the labor organizations. Although she was incredibly nervous for it was the first time she ever stood in front of a public audience, in general, the lecture went fine. She felt rapport with the participants and could join them in the struggle.

    She felt content that she could give and share something with others. The work that she did in the educational department was not easy. Although she was training and teaching others, she realized that she was one being trained.

    She felt alive through her work with women workers. Though these experiences, she slowly started to rebuild her sense of self-confidence. During her time at SWWA, one of the biggest events occurred in 1995. Lee Young Soon, the director of the municipal SWWA was elected as a representative of the municipal assembly during the local autonomy system municipality election.

    This event brought a qualitative upswing to the women workers movements. Remaining within the bounds of the electoral law, all the members helped both materially and mentally in the effort to get Lee Young Soon elected. Their collective effort strengthened unity and solidarity.

    For the women workers movement, it was an opportunity after the 70s to see the newly established electoral system as a way to continue working in the movement. It gave various options for elders who worked without being shaken or swayed throughout the entire movement.

  • Her Passion runs as deep as her Worries

    In July, Shon Young-Ju was appointed as the general secretary of SWWA. Although she had already been given much responsibility as the director of education, she worried whether she could fulfill this role well. Also, to her, 1996 was a critical year. She was extremely burned-out. She easily got tired.

    It became tougher and tougher for her to open up her heart and understand as her faith in her colleagues weakened. She was continually exhausted by her never-ending work and she began losing her composure. At the same time she started doubting her ability to do good work and started to lose confidence in herself again.

    She started thinking to herself, "Should I stop working with SWWA?" This was probably the toughest time of her whole life. She began evaluating her job and the conditions she needed to work under to be productive.

    One day she realized that the situation had come to a head and that she could not work on education anymore. In the summer of 1997, she got tired of the mechanical aspects of her work and the endless administrative tasks. She felt the need to take a break to recharge herself.

    One day she remembers lecturing on the subject of problems of men. However, she was not focused. She had lost all her interest. Even more, there was no mutual response from the participants. Her lecture did not include any new content.

    She also felt she was simply repeating the same things that were said before. She never felt such emptiness, lethargy and vanity as the moment she walked out of the hall, leaving the sound of applause behind. She realized that it is impossible to be satisfied with other matters if one is not satisfied with oneself.

    She decided never to work on education ever again. She felt that if she continued working without passion or commitment, she would be a danger not a help to the organization as well as herself.

  • In anticipation to be rejuvenated as a refreshed activist

    Son Young-Ju smiles from ear-to-ear as she tells me she is a lucky person. With the help of Rhie Chol Soon, the chairman of Korean Women Workers Associations United, she will take an entire year off to rest and study English in the Philippines on a CCFD scholarship given to her a good chance.

    She knows she was worked very hard over the past 7 years, but she feels rather burdened when she considers the fact that many of her seniors have worked even harder and longer with much effort and sincerity. She pledges to use her sabbatical wisely, while rejuvenating and re-energizing herself.

    She does not want to let the organization and her co-workers down and she endeavors to become a good example for the younger members of the organization. After she finishes the first half year of work at the end of July, she will leave for the Philippines.

    First, she will take a language course and take a look at other organizations of women workers in the Philippines. Specifically, she wants to better understand women's identity as women workers and research this as a new area to be explored in the Women Workers movement.

    Thus, her sabbatical year will not just be filled with absent-minded rest and leisure. She knows the time will be precious, even more so because she knows that it is impossible to make time stand still.

    She smiles with the hope that after one year, she will be able to rejevenate herself with enthusiasm for life, unite everyone together, and continue to participate as an activist in the women workers movement. And she thanks the supporting organization for giving her opportunity to improve her capacity for movement work in the future.

Posted by KWWA
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For the day when I can work again...
- 60 days of fighting for the continuation of employment and our labor union

Sun-mi Choi (Dong Hae Business Union treasurer)


"Will we see this oil stove again when winter comes?" I murmur these sad word to myself as the company requests for the stove to be returned.

On March 20th, the Japanese multinational enterprise, Korea Omuron Electronics Company took over Dong Hae (a labor union established in 1989, located at Kuro-No 3 industrial complex area).

Afte Korea Omuron Electronics Company took over and President Chae Chul took office, the company carried out previous plans to enforce the reduction of employee bonuses and to dissolve the existing labor union. In order to carry out these actions, the company demanded that workers sign a new employee contract which stipulated the revised terms of employment. The chairperson of Dong Hae and eight other workers refused to sign the contract.

The company immediately fired these nine workers. Dong Hae called the company's actions a violation of the labor law. They began striking all night to protest the company's unfair dismissals and to convince the company to rehire the nine dismissed workers. Two months later, the strikers continue to protest.

  • Multinational enterprises which do not guarantee the continuation of employment and the labor union

    Korea Omuron Electronics only took over that which had commercial value. They preserved the existing machine equipment such as the provision installation line, which produces relay units. They also continued to supply their products to Hyundai motors.

    However, since Korea Omuron Electronics disguised the transferable take over of the business as a property assets sales contract, they were not required to guarantee the continuation of employment for existing workers or the independent trade union.

    Thus, when they took over operations, they insisted that workers agree to their labor policies by signing a new employee contract. All those who refused were terminated. To fight the company's unfair dismissals, the union members continue to work together, even though they they cannot predict when they will be taken way from the union office and thrown out into streets.

    So far, due to the company's manipulative intervention, one union official was dragged out by her parents during the strike. Since the company is guarding the union office, the union members find it impossible to communicate effectively with the office.

    Thus, it is difficult for union members to reach each other. Presently, there are only 6 persons left striking. They are all union officials and they are all women.

    In order to resolve the situation, the trade union has requested to negotiate with management several times. However, Korea Omuron Market said they are not legally responsible, thus they are not in a position to accede to negotiation until the Dstrict Labor Relations Board makes a decision.

    Under such difficult conditions, there is nothing else left to do but continue fighting. They have waged a morning propaganda advertising campaign, a protest rally in front of the house of the president of the company, a rally of the agencies, a protest rally of the Ministry of Labor, an eggs-throwing protest, and fights through tonsure of the chairman, burning at the stake, stakes etc.

  • An example of collapsing small and medium enterprises in the IMF era

    Nearly 2 months has passed since we started the fight against Korea Omuron Electronics which was ignited with the anger of just 6 people who knew how to fight. In the beginning, I reproached those union members who did not join in the fight of the trade union.

    I was angry, but I realized that I should not waste precious energy and effort on such personal matters. When larger companies take over smaller companies, job security for workers must be guaranteed by the law. Dong Hae is a good example of how small & medium enterprises collapse and become the hunting target of foreign multinationals under the current IMF political situation.

    There must be a re-examination of the inhumane oppression by multinationals and the hostile enforcement of ordinance and legislative bills which permits M&A to abuse and eat up all of our money market, banking, and finance enterprises along with the general economy at cheap prices. The abusive actions of multinationals drive workers out into the cold streets and leave them with no means to support themselves.

    Also, the unlawful and expediential dismissal of employees after company take-overs should be stopped and workers must be guaranteed stable employment. I cannot give up so easily in this struggle. I feel a sense of responsibility. There should not be another Sam Mi special steel case. Every day I tie my head band tightly and continue to fight.

  • Never-ending fight , fight

    Every single day, local comrades have organized support visits and groups of defenders. Their passionate comrade spirit has helped support our fight. Throughout the two months of our all-night strike, we have not given up this exhausting fight.

    Our Dong Hae trade union defenders' fight will be the model solidarity fight. In an attempt to win over other union members, the company has used distorted propaganda telling other workers that the trade union's actions will threaten the company's economic health.

    They have also threatened workers by contacting workers' parents at home. However, we will not submit to the company's threats and unjust tactics. We continue to endure the struggle. Although the fight at the moment is difficult and lonely, rather than compromising, we are going to fulfill our demands through our workers' pride and strong will. Our demands are pure and imminent. We are fighting 'till the day we can go back to the site and work together with the members.

Posted by KWWA
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Unemployment policy of IMF's administrative system era

Gum-Hee Hwang(Editorial staff of KWWAU)


This article is written on the basis of the unemployment policy of IMF's control system era. We provide problems and suggestions to the IMF's unemployment policy. In addition, we present information regarding conditions of women's unemployment and possible countermeasures presented at the forum held on the 23rd of April, "Unemployment of women, find the soluton!" sponsored by Korean Women Associations United.

The countermeasures which the government is promoting to ameliorate rising unemployment are all short-term and inefficable. Therefore, those countermeasures are viewed negatively by society.

Since the unemployment policy largely fails to reach the needs of women workers, the situation is all the more serious. The unemployment policy is merely a means of getting a grip on the situation. Moreover, it is based on inaccurate information and is overly optimistic.

Since the government is not sufficiently aware of the reality of the situation, the government's policy is impractical. It is also based on a family-wage ideology, an anti-democratic decision-making process and an insufficient budget.

The government's countermeasures can be discussed in two ways. First, a lack of knowledge exists about the situation of unemployed women workers due to the patriarchical and male-centered sexist character of the unemployment policy. Second, the government's countermeasures are short-termed both in its planning and its enforcement.

  • The patriarchal characteristic of the countermeasures.
    1. The policy is based on a conven- tional gendered division of labor

      The unemployment policy which is being promoted by the government is based on a gendered division of labor. Since the man is perceived as the sole family supporter and the woman is viewed as the homemaker, no remedies exist for women workers even though they are suffering from massive dismissals and from severe uncertainty regarding their futures.

      In order to prevent social instability and riots, the government is reducing the unemployment rate and aiming to stabilize the unemployment rate at 5%. To do this, the government is using women's labor as the safety valve.

      The Korea Labor Research Institute recently explained that in this current economic crisis unemployed workers who stop searching for work become part of the non-economic population. Hence, they serve as shock absorbers in the labor market.

      This ensures that the unemployment level does not increase too rapidly. These "disappointed workers" constitute around 40% of the non-economic population. In addition, most of the persons in this category are women. Without women workers in the labor market, the total unemployment level would increase more drastically. In the end the unemployment policy becomes a means of restricting women workers to the non-economic population.

    2. Male-centered countermeasures

      The employment trend of the last two quarters of 1997 shows that women are more adversely affected by the economic crisis. In this period, the total number of unemployed persons was 550,000.

      During the same period in 1996 there was a 33% increase. The unemployment level of men has increased by 20.8% whereas for women it has increased by 60.6%. This shows that the increase in the number of unemployed women is much higher than the number of unemployed men.

      However, the government's efforts to create jobs is focused on creating more job opportunities for men. In addition, unemployment insurance is also limited to men. The most enforced countermeasure proposed by the government is the allowance or the unemployment system; however, this only reaches a small minority of the total unemployed women worker population.

      Also, the unemployment countermeasures are based on the premise that there should be only one male family supporter in each family. However, this countermeasure model can exist only in countries like Germany, France and other countries where social security networks are fully equipped.

  • Short-term and unreliable policy

    The biggest problem of the government's countermeasures is that the policy does not address the long run. Despite the need for countermeasures which prevent unjust dismissals and reduce the number of work hours, the government's policy is based on principles that promote the flexibility of the labor market.

    Hence, it fails to stop companies from continually contracting their workforces. In addition, because the unemployment policy has been in effect for less than a year, it is uncertain whether the government's policy can resolve the current unemployment situation, since this crisis is projected to to continue for the next three to four years.

    The government's unemployment countermeasures also lack sufficient financial resources and the outlook of financial resources seems thin. On March 26th, the total financial resources were set at 7 trillion 900 billion won.

    Among this, a general financial performance fee was included which amounted to 26 billion 600 million won, but it still only amounts to 3.3% of the total financial resources. In comparison to the 40 trillion won invested in organising illegal loans and the 10 trillion won allotted to rescue enterprises by the government, the financial resources for unemployment policies are very low. In addition, because the outlook of any future financial help is also low, it is questionable whether those unemployed 1,000,000 persons will be able to obtain any help at all.

    Also, the estimated resources allocated to help enterprises retrain employees and ease unemployment effects are meager. The estimated amount allocated to help ease unemployment effects is only 600 billion won out of 5 trillion 2 billion 100 million won, with the candidates reaching a mere 400,000. In order to help the unemployed, it is necessary for the government to create jobs. Currently, the government has promised to create about 150,000-200,000 jobs.

    However, many of the new jobs created by the government are low wage jobs with low living payments. They include cleaning the environment, tending green forests, recycling, organizing resources, and renumerating public facilities, which last about 2 to 8 months. In addition, the government's expenditure on the minimum costs of living for low wage earners is very low. Thus, their plan to offer stable jobs for the 120,000 unemployed is considered ineffective. New jobs for unemployed married women are even more bleak.

  • Countermeasures to unemployment

    What is the most suitable countermeasure regarding the current economic crisis that we are facing? The political measures should give priority to a 'protection policy for the unemployed' and 'unemployment preventive measures' if they are to supplement the weaknesses of the government's unemployment policy and provide diverse policy measures with different views.

    1. Enforcement of preventive measures for unemployment and the expansion of the policy for protecting the unemployed

      Those who are in charge of formulating the policy should realize that it should be a policy which simultaneously protects the unemployed while preventing rising unemployment. Unemployment restraining policies which maintain the present state of employment should be enforced and at the same time protective measures for the unemployed must be expanded. In order to do this, the government must take strong actions to root out any unlawful and unfair dismissals.

      The government should also take strong action against the unfair dismissals of women workers, especially those which arise from sexual discrimination. Also, by initially shortening the work week to 40 hours per week and to 35 hours per week in the long run, the possibilities for creating new jobs and maintaining the employment rate should improve. The labor group has suggested that if real-working hours per year is reduced to 2000, we can expect 2,000,000 or more of jobs to be created by the year 2000.

      As for other countermeasures, the publicsector should expand social service facilities for maintaining employment and increasing employment opportunities. Also, active measures should be taken for maintaining the employment of women workers such as the formation of organizations fighting for equal employment rights (e.g. Equal Employment Opportunity Corporation, EEOC in US).

      In addition, national expenditures should support more opportunities for vacation and temporary work leaves both for women and men. And there should be countermeasures to help workers who work in a place of business where there are less than 5 workers and for workers who work temporarily (temporary, part-time, a day etc.) to make a living wage.

      It is also important not to leave out the expansion of funds for countermeasures for the unemployed (labor circle has made a request to the government's general account to secure 20 trillion cho won or more of their financial resources), the enforcement of effectual wage bond security fund or the introduction of an allowance aid funding system for the unemployed.

    2. Healing social illnesses brought about by the economic crisis

      Above all, a countermeasure scheme should attempt to solve related problems such as crimes, suicides, the increasing number of orphans, the separation and breakdown of families and other mental shocks.

      The word 'unemployment' connotes more than just 'it is tough making a living'. After the IMF control system was introduced, reports of various social illnesses appeared which reflect the realities of the economic crisis. The sudden increase in unemployment and in reports of illnesses have reached a serious level. In such times of economic crisis, an increase in unemployment makes female discrimination more open, more publicized and more blatant, which re-enforces the gendered division of labor. The feeling of loss due to losing one's job has increased incidents of sexual violence by men who assault their wives.

      Therefore, the government's unemployment policy should be an all-round countermeasure which embraces the maintenance and creation of employment, provides remedies and protective measures for the unemployed, and offers solutions to cure social illnesses.

Posted by KWWA
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Changes in the Employment of Women in Korea before and after Financial Support from the IMF

Han-na Cho(Voluntary Activist for KWWAU, Currently Enrolled in a Master's Course at the University of Bielefeld, Germany)


The rapidly increasing number of unemployed workers following financial support from the IMF has become an immense social problem in Korea. The current unemployment situation has even been dubbed a "major crisis."

Statistics on unemployment announced by the government, however, are problematic because they fail to present accurate unemployment rates. In particular, current data on the unemployment of women is unknown, despite the fact that women are the most likely candidates for dismissal in the course of company structural admustment plans.

The failure to compile accurate unemployment statistics for women largely can be attributed to the family ideology which views the man as the breadwinner and the woman as his dependent.

In this article I will try to determine how financial support from the IMF has affected and changed the employment of women in Korea. Since the most recent employment and unemployment data (April 1998) is not yet available, this article does not include the most up-to-date information. However, KWWAU is continuing to conduct research on women's unemployment of women. The latest data will be included in my forthcoming studies.

  1. The Decrease in the Economically Active Population

    Prior to financial support from the IMF, the economically active population had steadily increased. However, its growth rate started to slow down during the latter half of 1997, when the current economic crisis initially became visible.

    In November of the same year the economically active population decreased for the first time. From November 1997 to the present (February 1998), the rate has continued to drop.

    Since October 1997, the period before the IMF provided Korea with financial support, the rate of participation in economic activities has decreased to a paltry 59.2%. The number of employed persons, compared to the same period last year, has decreased by 1,033 persons.

    When we examine gender differentials in these statistics, we find that the number of employed men decreased by 205,000 persons while the number of employed women decreased by 827,000 persons during the same period. In other words, women constitute more than 80% of the total unemployed population (See Table 1).

    Table 1.

    (Unit: 1000 persons; %)


    Economically Active Population

    Employed Population

    Rate of Participation in Economic Activities(%)

    Month/Year

    Total

    Male

    Female

    Total

    Male

    Female

    Total

    Male

    Female

    August 1997

    21,773

    12,860

    8,913

    21,308

    12,563

    8,745

    62.6

    76.1

    49.8

    September 1997

    21,779

    12,830

    8,949

    21,310

    12,530

    8,780

    62.5

    75.8

    49.9

    October 1997

    21,793

    12,826

    8,967

    21,341

    12,536

    8,805

    62.5

    75.7

    50.0

    November 1997

    21,762

    12,840

    8.922

    21,188

    12,473

    8,715

    62.3

    75.6

    49.7

    December 1997

    21,340

    12,719

    8,620

    20,682

    12,299

    8,383

    61.0

    74.8

    47.9


    January 1998

    20,645

    12,577

    8,068

    19,711

    11,959

    7,752

    58.9

    73.9

    44.8

    February 1998

    20,760

    12,621

    8,140

    19,526

    11,801

    7,725

    59.2

    74.0

    45.2

    From Monthly Statistics of Korea, published by the National Statistics Office

    During the same period last year, the unemployed population increased by 722,000 persons in March 1998. Therefore, we find that the women's rate of participation in economic activities dropped from 49.3% in 1997 to 46.8% this year (See the April 27, 1998, issue of the daily Hankyoreh).

    Such a decrease may be attributed to the "disappointed laborer" effect,

    "Disappointed laborer"designates those individuals among the unemployed population who have given up trying to find employment based on the assumption that it is near impossible to find a job. Persons belonging to this category are difficult to classify as "unemployed" because they have voluntarily dropped out from the labor market and consequently are likely not to join the labor market once again, in spite of government policy to create employment opportunities. In such a case, the unemployment rate will not decrease and inflation may even rise, resulting in a total failure of the policy (Cho Song-hye, Current Data on the Unemployment of Women and Tasks for Employment Stabilization Policy, page 37; cited in the 2nd quarter, 1998, issue of Analysis of Current Labor Situation Per Quarter, published by the Korea Labor Institute).

    which means that, women who no longer have any employment opportunities due to the economic recession voluntarily drop out of the labor market.

    Such a decrease in the economically active population, however, is not expected to continue for a long time. When large scale corporate restructuring is implemented, the consequential dismissal of men, who are the major source of income for most families in Korea, will have serious repercussions on the economic status of many families. As a result, other family members who previously have never worked are likely to join the economically active population in order to sustain their families.

  2. The Decrease in the Employed Population

    Although the employed population increased up until the latter half of 1996, the growth rate had visibly slowed down. It rose by a mere 1.4% in 1997. In December 1997, it decreased for the first time since September 1984.

    This year, the decrease in the employed population has become particularly severe, dropping by -3.4% in January when compared to the same period in 1997 (See page 16 of the 1st quarter, 1998, issue of Analysis of Current Labor Situation Per Quarter, published by the Korea Labor Institute).

    In February 1988 the employed population consisted of 19,526,000 persons (See Table 1). Since the period in which financial support from the IMF began, the employed population has decreased by 8.5%.

    The growth rate of employed women has drastically slowed down in comparison to that of men. When we compare the present statistics to those in October 1997, we see that the number of employed men fell by 5.8% whereas the number of employed women decreased by as much as 12%, which is almost double the figure for men. We can see from such statistics that the current economic crisis is having a far more adverse effect on women than on men.

    In the manufacturing industry the total employed population is significantly dropping, with its declining rate accelerating in January 1998 (See Table 2). The manufacturing industry can be divided into the light industry and the heavy chemical industry.

    The number of employed persons in the latter of the two industries, which had steadily increased over the past years, dropped for the first time in 1997. Much of the decreasing employment can be attributed to the increase in plant closures and bankruptcies.

    The financial crisis that Kia Motors and the Hanbo Group experienced last year resulted in massive bankruptcies for many related companies in the heavy chemical industry. As a result, the total number of workers in this industry, which amounted to 2,416 persons in 1996, dwindled to 2,361 in 1997, representing a -2.3% change.

    Table 2. The Currently Employed Population Per Industry

    (Unit: 1000persons; %)


    Agriculture,

    Fishery and

    Forestry

    Mining

    Social Infrastructure and Other Service Industries


    Manufacturing


    Construction

    Others

    1994

    2 699

    4 735

    4 695

    12 403

    1 777

    10 626

    1995

    2 541

    4 799

    4 773

    13 037

    1 896

    11 141

    1996

    2 405

    4 701

    4 677

    13 657

    1 968

    11 689

    1997

    2 324

    4 501

    4 474

    14 223

    2 004

    12 219

    1997 10

    2 557

    4 456

    4 427

    14 328

    2 058

    12 270

    11

    2 306

    4 497

    4 471

    14 385

    2 026

    12 359

    12

    1 917

    4 433

    4 409

    14 332

    1 966

    12 366

    1998 1

    1 856

    4 219

    4 196

    13 637

    1 761

    11 876

    From the April 1998, issue of Monthly Statistics of Korea, published by the National Statistics Office

    In addition, the growth rate of the employed population in the social infrastructure and the service

    industries, two fields that have expanded over the years, slowed down in 1997.

    In January 1998, it decreased for the first time. Within the service industry, the growth rate of retail and wholesale businesses, the lodging industry, the catering industry, and the construction industry slowed down significantly in comparison to the previous year due to the continuing economic recession; general businesses, personal services, and public services, on the other hand, showed a considerable growth rate (See page 14 of the 1st quarter, 1998, issue of Analysis of Current Labor Situation Per Quarter, published by the Korea Labor Institute).

    Another noteworthy phenomenon that has occurred following financial support from the IMF is the increasing growth rates in the employed population in the agriculture, fishery and forestry fields.

    Until February 1988, the number of workers in the employed population in these sectors had been steadily decreasing. However, in March 1998 this number increased by 369,000 persons in comparison to the previous month, totaling 2,344,000 persons.

    This increase has continued into April with a total of 2,673,000 persons currently working in these fields. This 8.8% rise in participation in April in comparison to the same period last year represents a significant increase.

    This increase may be attributed to the rising number of persons who wish to return to the provinces as well as the number of unemployed persons who actually return to their provincial homes. Among all industries, agriculture, fishery, and forestry represent the only fields to witness a rise in the employed population (See the April 27, 1998, and May 23, 1998, issues of the Hankyoreh).

  3. The Increase in the Unemployed Population

    Due to the fact that the total number of persons not participating in economic activities has increased and the total number of persons participating in economic activities has drastically decreased following financial support from the IMF, the unemployed population

    According to unemployment surveys conducted by the National Statistics Office, "unemployment" designates those individuals who have no remunerative work whatsoever during the period that the surveys are conducted.

    The following individuals are included: immediately employable persons who are actively seeking work; persons who, although they were able to do so in the past, have been unable to seek work actively due to inevitable reasons such as adverse weather, delayed confirmation of new employment, temporary illness, and preparation for self-employment.

    In addition, the "unemployed" category encompasses the following individuals: persons who have worked for over 1 hour for profit; family members who, although themselves without work or economic gain, have assisted in raising the profits work or companies of their own, have been unable to work and thus have been temporarily jobless during the survey period due to reasons such as temporary illness, adverse weather, leaves of any length, or labor strikes (See Kim Pyong-suk, Women's Strategies for Employment in an Era of Massive Unemployment, page 3).

    continues to rise. This may be attributed to the slowdown in the overall ability of the national economy to absorb potential employees, as exemplified by the increasing number of business closures and bankruptcies due to economic crisis and by the considerable decrease in new employment opportunities due to the retrenchment policies of various companies.

    As of March 1998, the unemployed population exceeded 1,300,000 persons (1,378,000 persons, to be exact). In April, the total number of unemployed persons amounted to 1,434,000, which constituted an all-time high. This statistic represents an increase of 60,000 persons when compared to the figure for the previous month. This means that 3,000 persons per day on an average have been their losing jobs.

    However, when we take into consideration the growing rate of those who are unstably employed, the anxiety felt by the general public over potential unemployment actually is far higher than the 3,000 persons cited above.

    The unemployment rate has risen to 6.7%, which is a 0.2% increase when compared to the figure for March 1998. The current rate is an all-time high since February 1986, which was exactly 12 years and 2 months ago. (See the May 23, 1998, issue of the Hankyoreh).

    After 1980 the unemployment growth rate steadily decreased, only to start increasing in 1997. In November and December 1997, the unemployment rate rose by 0.5%, respectively, when compared to previous months. In January and February 1998, the respective growth rates increased to 1.4% which shows that the total number of unemployed persons has risen drastically following the financial support form the IMF.

    Although the growth rate slowed down somewhat in March and April when compared to January and February, a dramatic rise in unemployment is expected to become far more pronounced starting in June 1998, when massive corporate restructuring is scheduled to take place (See Table 3).

    Along gender lines, the unemployment rate of women increased by 3.3% when compared to the figure for October 1997 whereas the unemployment rate of men increased by 4.2% during the same period. The growth rate of women's unemployment slowed down in March 1998, which may be attributed to the fact that married women have given up trying to find a new job.

    The actual number of women who wish to be employed is expected to far surpass government statistics. This is because, as has already been mentioned above, many women, as disappointed laborers, belong to the category of persons not participating in economic activities.

    According to the April 17, 1998, issue of the Hasnkyoreh, women make up 81% of the total number of persons not participating in economic activities as of March 1998.

    Table 3. The Unemployed Population and the Current Rate of Unemployment

    (Unit: 1000 person; %)


    Total

    Male

    Female

    1997 8

    465(2.1)

    297(2.3)

    168(1.9)

    9

    469(2.2)

    300(2.3)

    169(1.9)

    10

    452(2.1)

    290(2.3)

    161(1.8)

    11

    574(2.6)

    367(2.9)

    207(2.3)

    12

    658(3.1)

    420(3.3)

    238(2.8)

    1998 1

    934(4.5)

    617(4.9)

    317(3.9)

    2

    1,235(5.9)

    820(6.5)

    415(5.1)

    3*1

    1,378(6.5)

    (7.3)

    (5.2)

    4*2

    1,434(6.7)



    From the April 1998, issue of monthly Statistics of Korea, published by the National Statistics Office

    *1: See the April 27, 1998, issue of the Hankyoreh

    *2:: See the May 23,, 1998, issue of the Hankyor

    In 1992, 11.4 times more persons who wished to find jobs yet were not actively seeking work existed than completely jobless persons. When the former group is included in the calculation, the total unemployment rate surpasses 20% (See Cho Soon-kyung,

    The IMF Conditions and the Employment of Women, page 3). This year, in particular, even more of the work force is assumed to belong to the category of disappointed laborers when compared to the situation in 1992, due to the overall confusion brought about by the continuing economic recession, massive unemployment, and the severe difficulty in finding jobs.

    When we take into consideration the fact that a majority of these disappointed laborers are women, the percentage of women among the total unemployed population is expected to be far greater than the figure for 1992.

    According to the Ministry of Labor's current analysis of the disbursement of the unemployment benefit, the total number of persons who are involuntarily unemployed has increased drastically following the financial support from the IMF.

    The daily average of new recipients of the unemployment benefit was 65 persons in 1996. This figure increased to 292 persons in December 1997. In January 1998, the number skyrocketed to 931 persons, which is over 14 times the figure for the pre-IMF support year of 1996 (See Table 4)

    Table 4. New Recipients of the Unemployment Benefit per Type of Unemployment (Average Per Day)

    (Unit: 1person; %)


    1996. 7-12.

    1997. 1-11.

    1997. 12.

    1998. 1.

    Total

    65(100)

    158(100)

    292(100)

    931(100)

    Closure, Bankruptcy

    16( 24.6)

    45( 28.5)

    72( 24.7)

    205( 22.0)

    Retirement due to Business Reasons or Employer's Recommendation

    34( 52.3)

    66( 41.8)

    153( 52.4)

    551( 59.2)

    Retirement due to Age Limit

    8( 12.3)

    19( 12.0)

    15( 5.1)

    81( 8.7)

    Voluntary Retirement

    2( 3.1)

    4( 2.5)

    11( 3.8)

    16( 1.7)

    Others

    6( 9.2)

    24( 15.2)

    41( 14.0)

    77( 8.3)

    From page 21, the 1st quarter, 1998, issue of Analysis of Current Labor Situation Per Quarter, published by the Korea Labor Institute

    Table 5. New Recipients of the Unemployment Benefit Resulting from retirement due to Business Reasons or Employer's Recommendation(Average Per Day)

    (Unit:1person;%)


    1996. 7-12.

    1997. 1-11.

    1997. 12.

    1998. 1.

    Total

    34(100.0)

    66(100.0)

    153(100.0)

    551(100.0)

    Fewer than 30 persons

    1( 2.1)

    2( 3.0)

    6( 3.9)

    16( 2.9)

    30-299 persons

    14( 40.2)

    31( 47.0)

    72( 47.1)

    327( 59.3)

    More than 300 persons

    19( 57.8)

    33( 50.0)

    75( 49.0)

    209( 37.9)

    From page 21, the 1st quarter, 1998, issue of Analysis of Current Labor Situation Per Quarter, published by the Korea Labor Institute

    In addition, retirement by recommendation occurs far more often in the case of small and medium companies rather than in the case of conglomerates, which employ a considerable number of work force. (See Table 5)

    If we classify various firms as "small and medium companies" or "conglomerates" with 300 laborers as the dividing line (300 and fewer or 300 and more), laborers who retired on recommendation took up 42.3% of the total unemployed population in the case of small medium companies in 1996, whereas the same figure increased to 50.0% in January - November 1997 and 62.2% in January 1988.

    This drastic increase is due to the fact that, until now, employment adjustments have occurred mainly among small and medium companies and needy businesses. With the in-depth implementation of restructuring among conglomerates and banks in June 1998, however, the unemployment crisis is expected to spill over to huge corporations as well.

    Up until the first half of 1997, the categories of persons affected by employment adjustment consisted mainly of high school graduates and lower in terms of educational level as well as 40 and above in terms of age.

    Due to the business closures and bankruptcies of many companies, however, white-collar office workers have come to be the included among the targets of employment adjustment as well. As a result, the number of highly educated jobless persons in their 20's and 30's has been increasing (See Table 6). As of April 1998, those who previously held jobs amounted to 1,322,000 persons (See the May 23, 1998, issue of the Hankyoreh).

    However, because conglomerates are resisting the employment of new workers, the total number of newly unemployed individuals is expected to continue increasing. In particular, there is a high likelihood of a rise in the rate of new unemployment among university and college graduates.

    If college graduates consequently lower their expectations in selecting jobs, the employment crisis among those with lower educational levels is expected to become even more drastic.

    Table 6. New Recipients of the Unemployment Benefit Per Age and Educational Level

    (Unit : 1 person ,%)


    1996. 7-12.

    1997. 1-11.

    1997. 12.

    1998. 1.

    Total

    34(100.0)

    66(100.0)

    153(100.0)

    551(100.0)

    Below29

    1( 2.9)

    4( 6.1)

    15( 9.8)

    62( 13.8)

    30-39

    6( 17.6)

    16( 24.2)

    35( 22.9)

    127( 28.3)

    40-49

    14( 38.2)

    22( 33.3)

    51( 33.3)

    136( 30.3)

    above50

    14( 38.2)

    25( 37.9)

    52( 34.0)

    124( 27.6)

    Intermediate School Gradute and Below

    12( 35.3)

    21( 31.8)

    51( 33.3)

    162( 29.4)

    High School Graduate

    16( 47.1)

    29( 43.9)

    62( 40.5)

    219( 39.7)

    College/University Graduate and Above

    6(17.6)

    16( 24.2)

    40( 26.1)

    170( 30.9)

    From page 21, the 1st quarter, 1998, issue of Analysis of Current Labor Situation Per Quarter, published by the Korea Labor Institute

Posted by KWWA
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Working Women Vol.14

March, 1998
A edition committee member of KWWA
Catoon : Yang Son Jang

In rememberance of the 90th anniversary of Inter'l Women's Day, there will be performance of creative musicals. 'Our hope, our choice'


    Feature
    IMF AND WOMEN WORKS

    VOICES FROM WORKPLACES
    How there aren't workers to work in workplaces ? Since the food supplying string is cut

    VOICES FROM WORKPLACES
    The colleague-ship of Han Kuk Machine Union protected women workers from dismissal.

    FACING A NEW DAY OF A MILITANT WOMAN WORKER
    Yon Sook Kim, A Secretary General of Machang Women Workers

    HOTLINE FOR EQUALITY
    Research on the counselings from September, 1997 to January, 1998, 179 cases in total


Korea Working Women's Network 1998
Posted by KWWA
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