The Roles and Tasks of Labor Unions for Workers' Vocational Education and Training 1
6. The Role and Task of Trade Unions for Vocational Education and Training
omitting the employment security route. Accordingly, both the results of the analysis are similar to parameter values shown as in Figure 12, suggesting that the results of the analysis of all models are robust (see Addendum).
Figure 13. Results of the analysis of structural equation (education and training 2= the proportion of education and training expenses compared with labor costs)
The above results show that trade unions have no direct effects on vocational education and training, suggesting that the results are similar to that of preceding studies. In conclusion, trade unions in Korea have no influence on vocational education and training, and they only contribute to the improvement of the level of skills through employment security.
because enterprises emphasizing industry-specific skills and employees underlining general skills can resolve their differences. In addition, aside from a few conglomerates, enterprise-sponsored training cannot easily achieve economy of scale that are required for education and training (Park Duk-je, 1996, p. 52). However, industry-level trade unions in Korea have many limitations in terms of a closely knit organizational structure and bargaining system. First of all, organizational structure has its limitations: whether the branch of enterprises is recognized or not; union members extremely belong to specific companies and industries. In particular, the proportion of non-regular workers is low, and the structure of organization is mostly composed of regular workers. This clearly shows fundamental limits. In terms of collective bargaining, central based bargaining and regional branch one are unable to function for various reasons, including employers’ objection, and bargaining is mainly conducted by industries, which clearly shows a significant problem (No Joong-ki, 2013).
Although industry-level trade unions are organized, there are poor employers’ association so that this makes it hard to conduct industry-level bargaining. At the industry level, the Korean Metal Workers’ Union (KMWU) and the Korean Health and Medical Workers’ Union (KHMWU) conduct central-level bargaining and the resulting agreement is made. However, the smaller number of workplaces actually participates in central level bargaining than the workplaces that each union includes. In the case of the KMWU, major factories fail to participate in central level bargaining, so the scope of the relevant bargaining becomes narrow. It is likely that workers in small and medium-sized enterprises, which do not belong to the KMWU, have few chances to have the agreement. In many cases, there is no industry-level employer’s association, so it is hard to establish industry-level bargaining system. So, enterprise-level (branch or local) bargaining is conducted, which means that industry-level unions have no strong power (Kim Yu-sun, et al, 2007, pp. 10-11).
Accordingly, it is needed to shift from enterprise-level trade unions to industry-level ones in terms of the reform of the organizational structure. Moreover, efforts are to be made to achieve a true industry-level bargaining by industry-level unions. In a recent forum of the development strategy for industry-level trade unions, the emphasis was also on clearing away the legacy of enterprise- level trade unions, reconstructing/strengthening the pressing issue of organizational power to regain the status of the powerful industry-level trade unions, and enriching the substance of industry-level unions (Korea Confederation of Trade Unions et al., 2012). Vocational education and training should be put in the key agenda of industry-level trade unions. In particular, it is necessary
for Korea’s two umbrella labor organizations, including the Korea Confederation of Trade Unions, to pay attention to workers’ vocational education and training, suggest relevant issues, and take the lead in the affiliated trade unions.
2) Participation of trade unions in vocational education and training
(1) Assessment of vocational education and training project under employment insurance
The basic plan for vocational education and training led by the central government, which is based on vocational education and training project under employment insurance, contains a basic plan for vocational education and training in a society as a whole. It can be possible for trade unions to participate in a major part of vocational education and training project under employment insurance and the active labor market policy (training for the unemployed, etc.). In particular, the source of finances for the project under employment insurance is provided by employers and employees, so trade unions naturally have the right to participate in the project.5 However, it is not easy for trade unions to actively participate in the assessment of vocational education and training project under employment insurance.
Currently, the Ministry of Employment and Labor is in charge of planning and administering vocational education and training project under employment insurance. And a research institute is responsible for its assessment. In that regard, it is necessary for trade unions and employers’
association to actively participate in the assessment process. Trade unions and employers’
association may jointly conduct the assessment in itself. It is true that the best way is for both trade unions and employers’ association to jointly undertake the assessment, but the next best way is for both parties to dispatch experts from trade unions and employers’ association for monitoring the assessment made by the relevant research institute. First of all, both sides intervene in the assessment and, in the next step, they are involved in the monitoring at the execution stage.
Ultimately, they will actively intervene in the development of program and the planning of policy.
In order for both employers’ association and trade unions to play a key role in vocational education and training, the role of the government should be changed from an intervener to a social coordinator or a mediator. Up until now, the government has intervened in vocational
5) Choi Young-sup et al., (2009; Chapter 3) substantiated the effect of shifted wages of the premium of four social insurance programs, showing that the shifted wages had a significant influence. In that regard, this means that although employers pay the premium rate of vocational education and training under employment insurance, employees pay a part of the premium through shifted wages.
education and training on the ground of remedying market failures. Ultimately, it is needed for the government to serve as a supporter or a coordinator away from as a supplier of vocational education and training training and commit to monitoring public finances so as not to squander the finances such as employment insurance. Furthermore, to expand the intervention of trade unions and employers’ association, the efforts are to be made to reach an agreement at the Korea Tripartite Commission meeting, as well as to prompt legislation
(2) Participation in workers’ vocational education and training-related social consensus
The participation of trade unions in workers’ vocational competency is necessarily promoted through a social dialogue. Currently, the proportion of the representatives of the labor and management is small in the composition of a government panel, and related meetings are only formally held with no significant effect (Jeong Weon-ho et al., 2005; Son You-mi•Lee Eui-kyoo, 2002). The Korea Tripartite Commission achieved results: Workers’ Learning Resource Agreement in 2002; An Agreement on the Promotion of Labor Management Participation in Lifelong Learning. However, there is still no consultation on the execution.6
In that regard, in order to strengthen the status of the Korea Tripartite Commission and fulfill the details of the agreement, the efforts are to be made to empower the Commission with the legal authority. With two umbrella labor organizations divided in Korea, the government takes a divide and rule strategy, in which it wins the one side over and excludes the other side. To break down the practice, the Korean Confederation of Trade Unions is needed to participate in the Korea Tripartite Commission. If two umbrella labor organizations speak with one voice in the Korea Tripartite Commission, the status of the Commission will be improved, and the Commission will obtain the actual authority to reach an agreement.
The efforts of vocational education and training by labor-management agreement are needed to start from the high level and then expand into the middle level, industrial unit, and the low level, corporate unit. It is also necessary for employers to accept on-site workers or trade unions as a partner for vocational education and training by using employers’ association.
6. Among these agreements, ‘the participation of workers in vocational education and training and the expansion of supporting vocational education and training project in consultation between employers and employees’ and ‘the expansion of supporting vocational training project by trade unions and policy research’ have their legal basis as related provisions on Workers Vocational Skills Development Act enacted on July 2005.
Furthermore, it is necessary for trade unions to actively participate in vocational education and training at the committee at the middle level, or industry-level committee, and regional committee performing the consultation or agreement of vocational education and training. First of all, trade unions are to participate in such committees speaking with one voice. It is necessary for trade unions to participate in the Industrial Human Resources Development Council, for instance, to which the government currently authorizes power. Moreover, the intervention at the upper level organizations (two umbrella labor organizations and employers’ associations) is needed to resolve a disagreement between the scope of industry/types of business of the Industrial Human Resources Development Council and industry-level/types of business of organizational unit of trade unions (Jeong Won-ho et al., 2005; pp. 133-136). In addition, it is needed for trade unions to take an active participation in the Regional Human Resources Development Council, the governance body of regional•industry-specific human resources development project, which the government intends to operate vocational education and training project focusing on the demander. This explains that the agreement at such regional level or types of business level produces higher effectiveness (Park dong et al., 2007, p.189).
(3) Implementation of provisions of the Vocational education and training Act
Both employers and employees need to maintain constructive conflict and cooperation relations in terms of workers’ vocational education and training (Streeck, 1992). In Western Europe, where the country has a strong tradition of the trade union movement and strong trade unions, such conflict and cooperation relations are maintained based on unity and bargaining power In contrast, in Korea, where it has a short tradition of unions movement and weak trade unions, conflict and cooperation relations are cultivated based on the government’s legal ground.
According to Human Capital Corporate Panel Survey, two of the most difficulties in enterprise- based vocational education and training for incumbent workers are the transfer of education and training personnel arising from a lack in manpower and the shortage of HRD experts. And other difficulties include budget shortages for education and training and workers’ lack of interest and understanding of education.
Among these difficulties, employers and employees can jointly settle the shortage of HRD experts and workers’ lack of interest and understanding of education by using training experts. The government may provide training experts, or an outside training expert is employed. However, like the United Kingdom, trained learning experts for trade unions can be used to figure out the training
demand of companies and come up with proper training methods (Kim Ju-sub et al., 2003).
In Korea, there has been the Korea Tripartite Commission’s agreement on the finances for workers’
learning since 2002. However, the agreement is still not implemented. Trade unions of the upper organizations, including two umbrella labor organizations, should make various efforts to fulfill such agreement and raise workers’ learning fund by taking legal actions. Furthermore, trade unions should improve the understanding of workers’ education and strive to pay attention to it. In particular, they should do their best to enhance the learning ability of union members and acquire basic knowledge.
Table 9. Obstacles to vocational education and training project for incumbent workers
(Unit: frequency, %)
Definitely
No Probably No Neither Yes nor No Probably
Yes Definitely
Yes Total
(1) Lack of awareness among management staff on education and training
97 165 147 82 9 500
19.4 33.0 29.4 16.4 1.8 100.0
(2) Lack of workers' interest and understanding of education
37 147 195 118 3 500
7.4 29.4 39.0 23.6 0.6 100.0
(3) Budget shortages for education and training
42 180 140 113 25 500
8.4 36.0 28.0 22.6 5.0 100.0
(4) No need for education and training due to the character of unskilled tasks
121 237 116 23 3 500
24.2 47.4 23.2 4.6 0.6 100.0
(5) Shortage of HRD experts 20 83 178 182 37 500
4.0 16.6 35.6 36.4 7.4 100.0
(6) Difficulties in the transfer of manpower on education and training due to a shortage of manpower
13 72 139 221 55 500
2.6 14.4 27.8 44.2 11.0 100.0
(7) Poor contents of entrusted education and training
26 192 219 57 6 500
5.2 38.4 43.8 11.4 1.2 100.0
(8) High job turnover rate of employees completing education and training
64 242 160 31 3 500
12.8 48.4 32.0 6.2 0.6 100.0
Definitely
No Probably No Neither Yes nor No Probably
Yes Definitely
Yes Total
(9) Lack of preparation for education and training due to a change of types of business
140 222 111 25 2 500
28.0 44.4 22.2 5.0 0.4 100.0
(10) Have no room for investment due to the managerial crisis like falling sales
102 184 132 59 23 500
20.4 36.8 26.4 11.8 4.6 100.0
Source: Human capital corporate panel survey, 2011
With respect to the composition and function of the labor-management conference, Article 21 of the Act on the Promotion of Workers’ Participation and Cooperation stipulated that where an employer and employers’ association implement vocational education and training project, the employer shall undergo a resolution by the council when establishing a basic plan for education and training of workers. In Germany, trade unions had the right of education and training of workers through ‘An Agreement on Education Permission’ and ‘Collective Wage Bargaining’, the products of industry-level negotiations. In fact, education and training was obtained based on education and training program in enterprises and the right of co-determination of Works Council regarding skills related matters (Lee Chang-ho and Lee Sang-ho, 1999, pp. 41-53). There is no reason that the Article 21 of the Act on the Promotion of Workers’ Participation and Cooperation differs from the Article 98 of the Works Council Act stipulating co-determination that is the right of Work Council. Accordingly, trade unions in Korea have the legal basis on directly or indirectly intervening in education and training through the Labor-Management Council.
The Workers’ Vocational Skills Development Act provides the legal ground on the intervention of unions in vocational education and training project. In other words, according to the Act, employers shall conduct vocational skill development training for their workers (Article 4 (2)).
Where the government intends to establish the basic plan for vocational skill development, matters concerning the participation of labor and management and the improvement of cooperation shall be included (subparagraph 2 of Article 5 (2)). The relevant authorities shall hear opinions of enterprises’ associations and workers’ organizations (Article 5 (3), and Article 8 (2)). Where an employer conducts vocational skill development training in consultation with the Labor- Management Council or trade unions, the relevant authorities may preferentially treat any employer or organization of business operator (subparagraph 3 of Article 20 (2)).
An employer shall undergo a resolution by the council when establishing a basic plan for education and training of workers. In that regard, trade unions should make best use of such provision. To ensure that enterprises can abide by the provision, trade unions should intervene in education and training in companies. If enterprises fail to obey the provision, they shall be subject to sanctions, including a criminal charge. In order for enterprises to comply with provisions of the Act, it is also imperative for the Korea Tripartite Commission to provide support. Moreover, for implementing a provision in which education and training under the resolution by the Labor-Management Council shall be provided with preferentially subsides, it is needed for trade unions to put pressure on the government to establish the enforcement decree.