U.S.-Korea Free Trade Agreement: Potential Economy-wide ... - USITC

Box 6.3 Labor market conditions in Korea—Continued
At the same time, several sources reported a number of remaining problems with the observance of labor standards
in Korea. Korea reportedly has placed limitations on workers’ ability to organize. For example, the implementation of
legislation that would permit the establishment of more than one union at a single establishment has been delayed until
2009, and employees in a broadly defined group of essential sectors are not permitted to strike. 11 Further, a
representative of a U.S. workers’ union testified that efforts by Korean auto workers’ to form unions and bargain
collectively have faced significant obstacles and that more than 100 individuals are currently serving prison sentences
in Korea due to their participation in labor union activities. 12 The large and growing share of temporary employees in
the Korean workforce is problematic, as such employees generally receive lower wages than regular workers and are
ineligible for unemployment and health insurance. 13 Despite the recent introduction of the Employment Permit System
for Migrant Workers (EPS), it has been reported that migrant workers continue to experience discrimination and the
unfavorable effects of legislation that binds them to a certain employer. 14 Further, certain sources contend that the
workers’ rights protections accorded to North Korean employees in the Kaesong Industrial Complex—while superior
to the measures applied elsewhere in North Korea—remain inadequate, and that such employees’ salaries are often
paid to the government of North Korea. 15 Although goods produced by South Korean firms in the Kaesong Industrial
Complex would not benefit from the current provisions of the U.S.-Korea FTA, there are concerns that these provisions
may change following further consultations between the United States and Korea. 16
11 USDOS, “Korea, Republic of,” Country Reports of Human Rights Practices, March 6, 2007; and Kim, “The
‘Second Opening’ of Korea: The U.S.-South Korea FTA,” Spring 2007.
12 Meyer, testimony before the USITC, June 20, 2007, 221–222, 305.
13 USDOS, “Korea, Republic of,” Country Reports of Human Rights Practices, March 6, 2007; and LAC for
Trade Negotiations and Trade Policy, Report, April 27, 2007, 11-12.
14 Agence France-Presse, “Amnesty urges South Korea to improve foreign workers’ rights,” April 30, 2007; and
Read, “The Harsh Reality of Migrant Labor in South Korea,” May 19, 2007.
15 CRS, “The Proposed South Korea-U.S. Free Trade Agreement (KORUS FTA),” April 23, 2007, 24; and
Richardson, “Not a Sweatshop, but No Workers’ Heaven,” October 8, 2006.
16 CRS, “The Proposed South Korea-U.S. Free Trade Agreement (KORUS FTA),” April 23, 2007, 7; and
Brevetti, “Rep. Levin Expresses Concern with U.S.-Korea FTA’s Kaesong Provisions,” June 12, 2007.
the labor provisions in many previous FTAs were subject to a separate dispute settlement
mechanism, the provisions in chapter 19 of the FTA would be subject to the same dispute
settlement procedures as the agreement’s other obligations.
Each party would agree to provide access to domestic tribunal proceedings, allowing persons
with a recognized interest under its law in a particular matter to seek enforcement of its labor
laws. Such proceedings must be fair, equitable, and transparent; adhere to due process of the
law; and provide an opportunity for persons involved in such proceedings to support or
defend their positions. Each party also would agree to ensure independent review of tribunal
actions, provide legal remedies to ensure enforcement, and promote public awareness of its
labor laws. The FTA defines labor laws as statutes or regulations at the central level of
government that directly relate to internationally recognized labor rights, including the right
of association, the right to organize and bargain collectively, a ban on forced or compulsory
labor, the protection of children and other young laborers, and standards on conditions of
work, including minimum wages, hours of work, and occupational health and safety.
As with previous U.S. FTAs, the U.S.-Korea FTA would establish a Labor Affairs Council
that would oversee the implementation of chapter 19 provisions. Each party would be
required to designate an office within its labor ministry to serve as a contact with the other
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