Yoon threatens unions with end of government subsidies

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Yoon threatens unions with end of government subsidies

Published: 20 Feb. 2023, 19:34 Updated: 21 Feb. 2023, 18:12

President Yoon Suk Yeol at his office in Yongsan on Feb. 15. [NEWS1]

President Yoon Suk Yeol said he will consider ending government subsidies to labor unions that refuse to open their books.

"We have no choice but to take strong actions against denying the rule of laws and refusing to disclose the spending of the government money from the people’s taxes,” President Yoon said Monday in meeting with Prime Minister Han Duck-soo.

“Labor union reform starts with the transparency of labor union books,” Yoon said according to his spokesperson Lee Do-woon.

Labor Minister Lee Jung-sik in a press briefing held at the Yongsan office on Monday after briefing President Yoon said the government will exclude labor unions that fail to submit their accounting books to the government from government subsidies and will likely review the tax credit of 15 percent on union dues.

“We plan to take stern actions with no mercy to the 207 labor unions that have yet to submit their accounting books,” Lee said. “If they do not response in the next 14 days, we will have to fine them.

“And even then if they refuse to report, we will conduct a field investigation. If they refuse, obstruct or avoid, we will fine them.”

According to Employment and Labor Ministry, in requesting accounting books from 327 labor unions with 1,000 or more members in the first 15 days of the month, only 120 complied.

The two biggest labor union groups — the Korean Confederation of Trade Unions and the Federation of Korean Trade Unions — did not reply to the government.

The Yoon government has argued that the two union representatives have pocketed roughly 150 billion won in the past five years not only from the central government but also local governments.

Lee stressed that under the labor law, labor unions have to have records in their offices, including their own regulations, a list of union members, the names of executives and records of meetings.

Employment and Labor Minister Lee Jung-sik announces government actions against labor unions that refuse to disclose their accounting books at the Yongsan president’s office on Monday. [YONHAP]

“Under the law, the labor union has to report on its management situation and the results when requested by the administrative body,” Lee said.

Tensions between the government and the labor unions have been escalating.

The tough government actions comes just after the Democratic Party-led liberal parties, including the Justice Party, took steps toward legislating the so-called “yellow envelope law.”

The yellow envelope law prevents companies from filing for compensation for the damages caused by illegal strikes.

A court ruled in favor of Ssangyong Motor in ordering union workers that went on strike to pay 4.7 billion won for damages caused in 2009.

It has to pass through the National Assembly’s Legislation and Judiciary Committee, which is chaired by the People Power Party, Yoon’s party. There is also the possibility that the President Yoon could veto it.

BY LEE HO-JEONG [lee.hojeong@joongang.co.kr]