[vol.7] Voices from the Field_Masan Free Trade Zone Faced with Employment Instability
WORKING WOMAN 2008. 2. 1. 18:26Masan-Changwon Women Workers Association
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Current employment status in the Masan Free Trade Zone
- The influence of employment reduction on labor
First of all, labor load intensity has been becoming stronger in companies all over Korea. Since many shop-floor workers were dismissed, there is less labor than before. However, the company does not care about the lack of labor and maintains production levels at previous levels. Since the automation technology has been introduced the company put more efforts on increasing labor load intensity by changing working positions or methods.
Despite the fact that the total labor force in Masan Free Trade Zone has decreased significantly, total exports increase continuously. Employment in 1995 was 40.5% of 1987 levels, but total exports have increased by 14.5%. Under a fixed working environment, the production increases was achieved only by increasing workers' labor load intensity.
Second, most of the big enterprises tend to employ temporary workers or part-timers instead of full time workers. The increase in temporary employment causes competition among workers, and worsens working conditions.
Third, a consistent reduction in employment levels and a worsening employment situation weaken the labor union, which in the end harms workers' struggle under the labor union.
Fourth, employment instability worsens under the above situation together with threats of capital withdrawal. When the union is carrying out a struggle the head company reduces its production order under the pretext of a poor financial situation. This is the reason given for freezing wage increases by the company.
In addition, they mention if the union keeps on struggling, then the company may withdraw their capital. Under these circumstances, the workers are surrounded by uneasy feelings about their jobs and become confused about whether to join the union or not. The company even pressures married male workers to oppose the labor union movement because they are under more pressure to keep their jobs. Employment reduction, strengthening labor intensity, expansion of temporary employment, threatening capital withdrawal and weakening labor power in the union are policies of capitalists in order to maximize profit and to have a reasonable excuse to withdraw the capital or transfer to other countries.
- How to solve the employment problem in the Free Trade Zone
- The workers in the Free Trade Zone should have a full understanding about the employment problems.
- The workers must strengthen their power under the union leadership
Firstly, the union has to collect and analyse all the materials and information in regard to issues like the reduction of production, fundamental reasons for the current financial situation and management strategies of the company. Through these, the workers need to develop proper policy and alternatives to address their situation. The union has to utilize all the information to give workers enough understanding of the reality of the hidden intentions of the company.Next, whenever the capitalists make a decision to reduce production or transfer the company to other countries, the union must maximize the best deal for workers in collective bargaining because the above two actions are a sign of capital withdrawal.
Also, the union must obtain the following for employment guarantee: reasonable compensation, pre-negotiation in case of factory and labor transfer to other countries, keeping the present number of workers, turning temporary workers or part-timers into full-time workers, replacing the natural reduction of workers by new recruiting, and protection from company oppression which escalates insecure employment. At the same time, the union has to make efforts for temporary workers and foreign workers to be united together in solidarity under one union.
- In order to solve the common problems in the FTZ the workers must unite together, and establish solidarity organization.
The employment issue can not be solved by individual struggle. Therefore, the workers have to build up one solidarity group in the Zone, and look for countermeasure activities through sharing each situation and exchanging all related information. On the basis of this united power, the workers must raise the issue of MNCs as an agenda for all workers to the Korea Confederation of Trade Union. Then, it can be a base for political demands to the policy making government.
Most of the companies in the Zone seek a high profit in a short period, so while they are in the Zone, they rush to get higher profits in a privileged environment. Whenever they feel uncertainty regarding their income, then they leave the Zone. On the other hand, the worker' rights to survive are badly threatened.Therefore, the workers must obtain a full understanding about the reality of capitalist policies, and about the fundamental reasons for the employment problems in the FTZ. Through various education and training programs organized by the Union, the workers will have more enthusiastic participation in the union movement.
The companies which are located in the Masan Free trade Zone reached their maximum employment level around 1987. However, the level of employment reduced rapidly in two years, 1988 to 1989, and was down to 40.5% of 1987's in 1995. This massive downsizing will not happen again since the employment level is currently at a minimum.
In other words, the company will not be able to make similar mass dismissals or capital withdrawal like they have done before. The main reason is not because of the stagnation of manufacturing industries, but because of new management strategies in multinational cooperations and its structural problems.
Since the great workers' struggle in 1987, the workers established a labor union in Masan Free Trade Zone, and played a very active role in the Korean workers movement. Therefore, the MNCs had trouble controlling workers and faced wage increases and no further benefits in the special laws governing MNCs.
The remaining MNCs tried to reduce the number of workers saying that they needed to lower wage costs. Anyway, the number of employees decreased significantly. While the management carried on reduction of workers, they also organized a lot of activities to destroy the labor union movement.
There is much oppression against the democratic unions. The following are good examples. The Hankuk Sam Bon management gave a promotion to 30 workers who were involved in 1995's wage management struggle, and they started to oppose the labor union activities. They even tried to destroy the present union leadership. However it failed because of the union members' united power.
The Hankuk San Bon which established a democratic labor union last August made a resolution to join the Federation of Democratic Labor Unions (Korea Confederation of Trade Union) at the end of 1995. Since then, the company has showed intensified oppression to the democratic unions and revealed signs of insecure employment.
They have expanded their policy to reduce the number of workers from three years before, and tried to employ foreign labor even for positions using high technology. Hence, it becomes a serious problem especially to male managers. The company anticipated those managers' protest, so the company changed the reason for dismissing workers of the union which had affiliated in the Confederation of Trade Union recently. Also, the company mobilized male workers to oppose union activities.