National Cooperatives Trade Union and regional cooperatives conduct an industry level collective bargaining

 

The industry level collective bargaining which the National Cooperatives Trade Union(NCTU) has sought to achieve all the while draws attention on the background behind, as the responses from the cooperatives(employers) are far greater than expected at the outset.

 

According to the labor circle, regional agricultural cooperatives and the NCTU will sit on a second round of industry level collective bargaining on November 2. The NCTU was formed by an amalgamation of the National Agricultural Cooperatives Trade Union with the National Livestock Cooperatives Trade Union in January this year.

 

The introductory first round of negotiation was arranged on October 20. In fact, the National Livestock Cooperatives Trade Union had an experience of conducting the industry level collective bargaining with the employers before the union merger, whereas it is very new to the National Agricultural Cooperatives Trade Union.

 

The number of cooperatives which are currently conducting the collective bargaining with the NCTU reaches 73, including the livestock cooperatives. The livestock cooperatives commenced the negotiation with the National Livestock Trade Union since March this year already.

 

Considering the total number of regional agricultural and livestock cooperatives is 209 cooperatives, the participating cooperatives in the industry-based collective bargaining is exceeding 1/3 of the total number of cooperatives. The NCTU is expecting that the number will increase further gradually, as the regional cooperatives will face a growing pressure on the introduction of the wage peak system from the National Agricultural Cooperative Federation(NACF).

 

The reason why regional cooperatives show their keen interest in the industry-based collective bargaining is the issue of the wage peak system. The National Agricultural Cooperative Federation(NACF) in July this year sent out an official notice to 1,132 regional agricultural and livestock cooperatives under the subject of 'reference guideline regarding the extension of retirement age and the introduction of wage peak system'.

 

The notice reads that as the retirement age of 60 years old is applicable even to the workplaces employing less than 300 workers from next year, all cooperatives shall introduce the wage peak system.

 

After obtaining the legal advice which confirmed that the introduction of wage peak system is not a legal obligation in accordance with the extension of retirement age, the union proposed its draft demand to the employers on the basis of the confirmed legal advice at the first round of negotiation. The draft demand also included the points that in case of changing the wage system, it has to be agreed between the management and union, and wages shall not be linked to the personnel and performance appraisal.

 

"The second round of negotiation will be a tug of war and the employers' side is expected to come up with their counter proposals to the union", a union official said.

 

reported by Yang Woo-ram
edited in English by Kim Sung-jin

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