Strike damages bill angers businesses and faces PPP opposition

Industry

Published: 15 Sep. 2022, 19:22

Strike damages bill angers businesses and faces PPP opposition

Sohn Kyung-shik, chairman at Korea Enterprises Federation, right, delivers a letter expressing concern about a bill that limits employers' rights to claim damages to striking workers on Wednesday at the National Assembly. [KIM KYUNG-ROK]

Businesses are fuming over a set of bills that would limit their ability to seek damages in the event of losses related to strikes.

Lawmakers from the left-leaning Justice Party and the Democratic Party (DP) proposed Thursday a bill to prohibit employers from seeking compensation if businesses are harmed as a result of a strike.

The bill protects regular workers, sub-contractors and freelancers.

It does allow employers to seek damages in case of the losses incurred as a result of violence or rampage but not for lost sales or profits.

Six bills are pending with similar objectives.

Proponents argue that such bills could help ensure the right to strike, while the opponents see property rights under threat.

"Companies tend to abuse suits to suppress labor unions," said Lee Eun-joo, the Justice Party's interim chief.

Heads of three business lobbying groups have delivered a letter challenging the bill to a member of the Democratic Party.

"I expressed concerns about the bill on behalf of business," Sohn Kyung-shik, chairman at Korea Enterprises Federation, told reporters after meeting with Rep. Jeon Hae-cheol, who heads the Environment and Labor Committee at the National assembly.

"It's about breaching property rights," Sohn said. "Without the right to claim damages, there will be higher possibility of collective bargaining turning more violent. I requested that Democratic Party members withdraw from the proposed bill."

Sohn went on to note that such rules are rare around the world. Accompanying Sohn was Kim Ki-moon, chairman of the Korea Federation of SMEs, and Choi jin-sik, chairman of the Federation of Middle Market Enterprises of Korea.

Of the 56 lawmakers who supported the bill, 46 are affiliated with the DP and 6 from the Justice Party.

The DP holds the majority with 169 seats. The conservative People Power Party holds 115 seats and the Justice Party six.

The dispute came after the 51-day strike by subcontractors of Daewoo Shipbuilding & Marine Engineering (DSME) ended in July with a rushed agreement.

The shipbuilder filed a 47-billion-won ($33.7 million) damage claim suit against the leaders of a labor union, although DSME estimates actual losses total around 800 billion won.

DSME said it had filed the suit in order to prevent the recurrence of strikes, and that it has limited the subjects of the suit to the leaders of the subcontractor union.

The occupation of its shipyard in Geoje, South Gyeongsang, significantly delayed the building of ships for a significant period of time, according to DSME, whereas the subcontractors claim the action was a last resort to gain bargaining power in wage negotiation.

President Yoon Suk-yeol and members of the People Power Party declared the move as illegal and said it caused substantial financial losses.

BY PARK EUN-JEE [park.eunjee@joongang.co.kr]