🚨 Labor-Management Autonomy

Today Korean Social News for Beginners | 2025.12.10

0️⃣ Maintaining Accounting Disclosure and Abolishing Joint Liability, Balancing Autonomy and Transparency

📌 Lee Jae-myung Administration Shifts to 'Labor-Management Autonomy' Policy…but Keeps Union Accounting Disclosure

💬 The Lee Jae-myung administration has changed the core direction of labor policy to 'labor-management autonomy', but decided to keep the union accounting disclosure system that was implemented under the Yoon Suk-yeol administration. The government appears to have considered public opinion that unions should strengthen their public responsibility since they receive tax benefits. However, the government abolished the 'joint liability system' that blocked lower-level unions' tax deduction benefits when upper-level organizations did not disclose their accounts, and changed to an 'autonomous disclosure' method where each union discloses its own accounts. The government plans to provide 11 billion won to the two major labor federations next year, and considered that completely eliminating the accounting disclosure system could raise criticism of 'union privileges'. This is evaluated as a practical adjustment that seeks a balance between union autonomy and accounting transparency.

💡 Summary

• Labor-management autonomy is a principle that minimizes government intervention and allows labor and management to solve problems autonomously.
• The Lee Jae-myung administration maintains the union accounting disclosure system but abolished joint liability.
• The balance between union autonomy and social responsibility based on tax benefits is key.

1️⃣ Definition

Labor-management autonomy means a principle that minimizes government intervention and allows workers and employers to cooperate and solve labor-management issues by themselves. It is an institutional direction that emphasizes voluntary agreement and negotiation between labor and management rather than direct government control of the workplace.

This principle is based on the three labor rights (right to organize, right to collective bargaining, right to collective action) guaranteed by Article 33 of the Constitution, and aims to create an environment where labor and management can negotiate and agree on equal footing. Recently, there is a trend to strengthen labor-management autonomy in various areas such as accounting disclosure, collective bargaining, and working hours adjustment.

💡 Why is it important?

• It strengthens social dialogue and cooperation based on trust between labor and management.
• It enables flexible problem-solving that fits workplace conditions rather than government control.
• It guarantees the independence and autonomy of labor unions to build democratic labor-management relations.
• Social responsibility and transparency based on public funding must also be maintained.

2️⃣ Current Status and Issues of Labor-Management Autonomy

📕 The Lee Jae-myung Administration's Labor Policy Shift

• Labor-management autonomy was set as the core direction of labor policy. Key details are as follows:

  • The government shifted policy to reduce direct intervention in labor relations and respect voluntary consultation between labor and management.
  • It moved away from the Yoon Suk-yeol administration's labor regulation-centered policy and emphasizes labor-management cooperation and dialogue.
  • It takes a balanced approach that guarantees the independence and autonomy of labor unions while maintaining public responsibility.
  • This is a policy direction shift for the healthy development of labor relations and activation of social dialogue.

• Financial support for the two major labor federations continues. Key details are as follows:

  • The government plans to provide 11 billion won to the two major labor federations, including the Federation of Korean Trade Unions and the Korean Confederation of Trade Unions, next year.
  • This recognizes the public nature of labor unions and supports activities for the development of labor relations.
  • As tax money is invested, transparency in union accounting and public responsibility are also required.
  • It is a structure where government support and autonomy guarantee occur simultaneously.

📕 Maintaining the Union Accounting Disclosure System

• The accounting disclosure system implemented under the Yoon Suk-yeol administration will be maintained. Key background is as follows:

  • The principle that unions must secure accounting transparency as they receive union dues tax deduction benefits was maintained.
  • Public opinion was considered that it is difficult to gain public support for not disclosing accounts while receiving tax benefits.
  • There were concerns that completely abolishing accounting disclosure could raise 'union privilege' controversy.
  • It was judged that social responsibility and transparency based on public funding can coexist with labor-management autonomy.

• Joint liability was abolished and changed to autonomous disclosure. Key improvements are as follows:

  • The joint liability system that blocked lower-level unions' tax deduction benefits when upper-level organizations did not disclose accounts was abolished.
  • Each union can disclose accounts individually, respecting autonomy between unions.
  • The unreasonable structure where upper-level decisions disadvantage lower-level unions was resolved.
  • It was adjusted to guarantee union independence while strengthening individual union responsibility.

📕 Reactions from Labor and Business Circles

• Labor circles welcome the expansion of autonomy but request additional improvements. Key positions are as follows:

  • The abolition of joint liability is positively evaluated in terms of guaranteeing union autonomy.
  • However, claims are still raised that the accounting disclosure obligation itself violates union self-governance.
  • It is pointed out that the Trade Union Act Article 25 only requires disclosure to union members, and mandatory disclosure to non-members is excessive regulation.
  • The position is that an autonomous management system where unions disclose accounts to members themselves is sufficient.

• Business circles continuously demand strengthening accounting transparency. Key claims are as follows:

  • They emphasize that unions receiving tax benefits have an obligation to disclose accounts transparently.
  • The opinion is that it is unfair for unions to receive public funds without disclosing accounts.
  • Some argue that the accounting disclosure system should be further strengthened to increase union responsibility.
  • The position is that labor-management autonomy must be premised on transparency and accountability.

💡 Key Issues of Labor-Management Autonomy

1. Autonomy vs Transparency: Balance between guaranteeing union independence and securing accounting transparency
2. Abolishing Joint Liability: Resolving the structure where upper-level decisions disadvantage lower-level unions
3. Public Responsibility: Necessity to fulfill social responsibility as tax benefits are received
4. Autonomous Disclosure: Accounting disclosure method based on individual union judgment
5. Government Role: Supporting labor-management cooperation is a key task rather than excessive control

3️⃣ Expected Effects and Tasks of Labor-Management Autonomy

✅ Expected Effects of Labor-Management Autonomy

• Autonomy and democracy in labor relations are strengthened. Key effects are as follows:

  • Unilateral government intervention decreases and labor and management can negotiate on equal footing.
  • Union independence is guaranteed so member interests can be represented more effectively.
  • Labor and management can find flexible solutions that fit workplace conditions by themselves.
  • A healthy labor-management culture based on trust and cooperation between labor and management is formed.

• Social dialogue and cooperation are activated. Key effects are as follows:

  • Social dialogue organizations where government, labor, and business discuss together are strengthened.
  • Cooperative problem-solving methods rather than simple confrontation can be established.
  • Procedures to mediate labor-management conflicts and reach agreements are systematized.
  • Long-term stability and predictability of labor relations increase.

✅ Tasks for System Establishment

• A balance between accounting transparency and autonomy must be found. Key tasks are as follows:

  • Accountability based on public funding must be secured while respecting union autonomy.
  • Rather than excessively regulating accounting disclosure methods, a direction that induces voluntary disclosure is needed.
  • Internal monitoring systems that provide sufficient information to union members must be strengthened.
  • Efforts by unions themselves to increase transparency are important to increase social trust.

• Imbalance in negotiating power between labor and management must be resolved. Key directions are as follows:

  • For labor-management autonomy to work properly, labor and management must be able to negotiate on equal footing.
  • Institutional support to strengthen the bargaining power of small and medium-sized enterprises or non-regular workers is needed.
  • Mechanisms must be prepared so workers' voices are reflected even in workplaces with low union organization rates.
  • The government should play a mediator role to balance power between labor and management.

• Dialogue organizations for reaching social consensus must be strengthened. Key measures are as follows:

  • The practical functions of social dialogue organizations such as the Economic, Social and Labor Council must be increased.
  • Regular consultative bodies where labor, management and government participate together to discuss wages, working hours, employment stability, etc. must be operated.
  • Specialized organizations that can prevent and mediate labor-management conflicts early must be expanded.
  • A system to give effectiveness to social agreements and check implementation must be established.

4️⃣ Related Terms Explanation

🔎 Three Labor Rights

• The three labor rights are basic rights of workers guaranteed by the Constitution.
  • The three labor rights refer to workers' rights guaranteed by Article 33 of the Constitution: the right to organize, right to collective bargaining, and right to collective action. The right to organize is the right to form and join a labor union, the right to collective bargaining is the right for unions to negotiate working conditions with employers, and the right to collective action is the right to take collective actions such as strikes.
  • The three labor rights are collective labor rights that guarantee workers can improve working conditions on equal footing with employers. Individual workers are in a weaker position compared to employers, but negotiating power increases when acting collectively through unions.
  • Labor-management autonomy is the institutional foundation that actually guarantees these three labor rights. The three labor rights can work properly only when labor and management can negotiate and agree autonomously without excessive government intervention. However, the right to collective action is restricted for civil servants and teachers, and there are certain restrictions in essential public services.

🔎 Trade Union Act Article 25

• Trade Union Act Article 25 is a provision that regulates union accounting management and disclosure.
  • Trade Union Act Article 25 requires unions to conduct accounting audits every six months and disclose the results to union members. This provision is to enable union members to monitor and democratically control union financial operations.
  • The key point of this provision is disclosure 'to union members'. The law did not mandate disclosure to non-members or the general public. It is an internal control system premised on autonomous monitoring by union members.
  • However, the Yoon Suk-yeol administration broadly interpreted this and introduced an accounting disclosure system that requires disclosure to all citizens. Labor circles protested that this violates union self-governance. The Lee Jae-myung administration maintains the accounting disclosure system but abolished joint liability and changed to autonomous disclosure to harmonize the original purpose of the law with public responsibility.

🔎 Tax Deduction System

• Tax deduction is a system to deduct part of union dues from taxes.
  • Tax deduction is a system where taxpayers can directly deduct certain expenses from taxes. Union members can deduct a certain amount of union dues paid (up to 200,000 won annually) from earned income tax.
  • This system was introduced to recognize the public nature of union activities and encourage union participation by reducing the burden on members. Since unions play a public role in protecting workers' rights and stabilizing labor relations, the state supports them through tax benefits.
  • However, there is also an opinion that unions must secure accounting transparency and fulfill social responsibility as public resources (tax reduction) are invested. The government maintains the accounting disclosure system with this logic and tries to balance tax benefits with public responsibility. Labor circles argue that tax deduction is not a privilege but legitimate recognition of the public role of unions.

🔎 Joint Liability System

• Joint liability means a system where lower-level organizations are disadvantaged by actions of upper-level organizations.
  • Joint liability refers to a system where related groups are disadvantaged by the actions of one group. In the context of union accounting disclosure, it meant a system where lower-level unions' (individual unions under umbrella organizations) tax deduction benefits were restricted when upper-level organizations (e.g., Federation of Korean Trade Unions, Korean Confederation of Trade Unions) did not disclose accounts.
  • This system was a means to pressure upper-level organizations, but was criticized for violating lower-level autonomy and lacking fairness. Even if lower-level unions disclosed accounts, they could not receive benefits if upper-level organizations did not disclose, which was an unreasonable structure.
  • The Lee Jae-myung administration abolished this joint liability and allowed each union to disclose accounts individually. This is evaluated as a measure that respects independence between unions and strengthens practical labor-management autonomy. Individual unions can receive tax deduction benefits if they disclose accounts based on their own judgment, achieving harmony between union autonomy and public responsibility.

5️⃣ Frequently Asked Questions (FAQ)

Q: Does labor-management autonomy mean the government will not intervene in labor relations at all?

A: It doesn't mean complete withdrawal, but reducing excessive control and focusing on a mediator role.

• Labor-management autonomy is not a concept that excludes all government intervention. Rather, the government plays a role in creating an environment where labor and management can negotiate autonomously, mediating when conflicts occur, and protecting the rights of workers who are the weaker party. For example, dispute mediation through labor commissions, minimum wage determination, and supervision of Labor Standards Act violations are still important government functions.
• The core of labor-management autonomy is to build the ability of labor and management to consult and agree by themselves. It is more effective to help labor and management solve problems through dialogue than for the government to unilaterally regulate or control. However, the government can intervene when there is a severe power imbalance between labor and management or when public interest is harmed. Ultimately, labor-management autonomy is a principle that pursues a balance between autonomy and regulation.

Q: Doesn't the union accounting disclosure system violate union self-governance?

A: A balance must be found between securing accountability based on public funding and guaranteeing autonomy.

• Labor circles argue that the accounting disclosure obligation violates union self-governance. This is because the Trade Union Act only requires disclosure to union members, not mandating disclosure to non-members. The position is that since union finances are operated with union dues paid by members, disclosure to members only is sufficient.
• On the other hand, the government and business circles argue that accounting transparency must be secured as unions receive tax deduction benefits and government subsidies. The logic is that organizations receiving public resources should naturally disclose accounts to the public. The Lee Jae-myung administration, considering both opinions, chose a compromise of maintaining the accounting disclosure system but abolishing joint liability so each union can disclose autonomously. While not a perfect solution, it is evaluated as a realistic choice that seeks a balance between autonomy and responsibility.

Q: What efforts are needed for labor-management autonomy to be established?

A: Building trust between labor and management, securing balanced negotiating power, and strengthening social dialogue are key tasks.

• For labor-management autonomy to work properly, first, trust must be built between labor and management. Autonomous negotiation is difficult in adversarial relationships. There must be recognition that labor and management are partners pursuing common interests. Second, balanced negotiating power between labor and management is needed. Small and medium-sized enterprises or non-regular workers have weak bargaining power, so the government must support them to enable equal negotiation. Third, social dialogue organizations must be strengthened. A culture must be created where labor, management and government regularly meet to mediate conflicts and reach agreements in organizations like the Economic, Social and Labor Council.
• Additionally, unions must increase their own democracy and transparency to gain social trust, and employers must respect workers' rights and engage in reasonable negotiations. The government should focus on mediating and supporting labor and management rather than controlling them. Labor-management autonomy is not achieved overnight and requires continuous effort and cooperation from all parties.

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