KCTU gives Lee government 70 out of 100 after one year, plans general strike in July

Stalled direct bargaining with prime contractors, no solution to labor polarization in sight; inadequate protections for irregular and subcontracted workers; distribution over growth-first policy needed

Yang Kyung-soo, chairman of the Korean Confederation of Trade Unions, speaks at a press briefing evaluating the first year of the Lee Jae-myung government, held at the KCTU headquarters in Jung-gu, Seoul, on Wednesday. [Yonhap]

By Jung Joo-won, The Herald Business

The Korean Confederation of Trade Unions characterized the first year of the Lee Jae-myung government as "a period with no answer to polarization." Despite the administration's stated commitment to respecting labor, direct bargaining with prime contractors has stalled, and workers have seen little tangible change in protections for irregular and subcontracted employees or in the prevention of industrial accidents, the umbrella union said.

KCTU Chairman Yang Kyung-soo made the remarks Wednesday at a press briefing titled "One Year of the Lee Jae-myung Government: No Answer to Polarization," held at the KCTU's education hall in Jung-gu, Seoul. "A Kospi of 8,000 is not a happiness index for workers," he said. "Polarization in our society is deepening, yet government policy has failed to address it."

The KCTU identified "polarization" as the defining theme of its one-year assessment of the Lee administration. Gaps are widening between large companies and small and medium-sized enterprises, between prime contractors and subcontractors, and between regular and irregular workers, yet the government has tilted toward growth-first policies while falling short on reducing workplace inequality, the union said.

KCTU spokesperson Jeon Ho-il said the era of Kospi 8,000 has arrived, but the income gap between those who own shares and those who do not keeps growing. "The Samsung Electronics bonus controversy and Homeplus's mass layoffs happening at the same time lay bare the reality of polarization," he said.

The KCTU said that even after amendments to the trade union law, direct bargaining with prime contractors has failed to take hold on the ground. "The system has opened a door, but the door remains shut," Jeon said. "Fewer than 10 workplaces have actually carried out prime contractor bargaining, and the system is not functioning in practice due to conflicting rulings from the Labor Relations Commission and the government's passive stance."

The union also said protections for irregular and subcontracted workers remain inadequate. Rather than extending the permitted duration of irregular employment or paying various allowances, the priority should be establishing a firm principle of converting workers in permanent, ongoing roles to regular employment status, the KCTU said.

A press briefing evaluating the first year of the Lee Jae-myung government is held at the KCTU headquarters in Jung-gu, Seoul, on Wednesday. [Yonhap]

Yang also stressed the need to protect workers during the ongoing industrial transition. "The AI shift and the semiconductor boom can only be welcomed by all if distributive justice is realized," he said, adding that shorter working hours and greater worker participation are needed to ensure the gains from industrial transformation do not concentrate in the hands of a few.

On industrial accidents, Yang said, "The talk is prevention, but the reality on the ground is neglect." The KCTU attributed the recurring pattern of serious workplace accidents to insufficient employer accountability and safety systems that exclude worker participation. It called for stronger work-stoppage rights and a safety management framework centered on frontline workers.

On the minimum wage, the union said this year's increase fell short of the inflation rate, leaving real wages stagnant. It also called for a more proactive government role in closing the minimum wage blind spots facing workers in special employment arrangements and platform jobs.

Yang gave the Lee Jae-myung government a score of 70 out of 100 for its first year. "There is much that is positive in the direction and goals of the labor policies the government has announced," he said, "but workers are not feeling the effects on the ground, and there is concern that the administration remains mired in a growth-first mindset — the idea that distribution follows from growth."

He added that society must give people the confidence that they can live on sufficient wage income, and called for a genuine policy shift that puts the value of labor at the center and works to reduce polarization.

The KCTU plans to pursue a general strike in July, demanding expanded direct bargaining with prime contractors, guaranteed fundamental labor rights, and stronger protections for workers navigating the industrial transition.

jookapooka@heraldcorp.com