Submission of evidence such as keeping and preserving financial books and documents
Expansion to other labor organizations such as worker councils subject to support
Excluded from support for training union officials and international exchanges
Labor groups whose accounts are not transparently disclosed by the government will be excluded from the budget support project.
On the 20th, Minister of Employment and Labor Lee Jung-sik announced the ‘zero tolerance principle’ for 207 unions that did not submit the results of keeping and preserving accounting books, and the suspension of government support and the withdrawal of subsidies have been concreted.
According to the 2023 labor group support project reorganization plan confirmed and announced by the Ministry of Employment and Labor on the 23rd, labor organizations applying for subsidies must provide evidence to confirm whether or not they have ‘keep and preserve financial books and documents’ in Article 14 of the Trade Union Act. materials must be submitted. If not submitted, it was decided to be excluded from the support project. It was clarified that strengthening the transparency of government subsidy projects operated with taxpayers’ money and accounting management is a duty given to unions and a basic requirement for running government projects.
In addition, the target of support was expanded from the existing labor union to ‘other labor groups such as a council composed of workers’. As of 2021, the unionization rate of all workers is only 14.2%, and it is organized around large corporations, so it was considered that it is difficult for organizations that represent the interests of non-unionized workers, who account for the majority, to participate in the project. Unions at workplaces with less than 30 employees accounted for only 0.2%. As a result, about 90% of last year’s subsidy (3.5 billion won) was concentrated in the two major labor unions (Federation of Korean Trade Unions and the Korean Confederation of Trade Unions). With the expansion of support targets, various labor groups, such as organizations composed of non-regular workers and platform workers, or worker councils within regions and industries, can participate in the project. In particular, by allocating 50% of this year’s budget (4.4 billion won) to new participating organizations, it is expected to support various activities of new labor organizations such as the workers’ council and the MZ union, and reduce the financial burden.
The support project was also reorganized so that the union’s own budget was used for education of union officials and international exchange projects. Instead, it plans to focus on protecting the rights and interests of vulnerable workers such as non-unionized workers, narrowing the gap, and providing education focused on industrial safety.
In addition, from 2022, subsidy settlement will be verified through an accounting professional. As a result of the verification, if illegal supply and demand such as improper use is confirmed, strict measures will be taken, such as refunding subsidies, in accordance with relevant laws and regulations. It was decided to expand the on-site inspection, which had been conducted only in some areas, to all project execution organizations, and to exclude organizations with poor performance evaluation from participating in the project the following year.
According to Rep. Kwon Seong-dong of the People’s Power, the Ministry of Employment and Labor and local governments provided 152.1 billion won to the two major labor unions for five years from 2018 to 2022. 134.4 billion won by local governments and 17.7 billion won by the Ministry of Employment and Labor. However, it is expected that support for the two major trade union confederations will inevitably be reduced due to the government’s change in standards.
The Ministry of Employment and Labor plans to announce the project in March after making an administrative notice this month in accordance with the reorganization plan for the labor group support project.
Minister Lee Jung-sik said, “We expect that various labor organizations, such as the MZ union and the workers’ council, will participate in the project through the business reorganization, contributing to strengthening the protection of the rights and interests of vulnerable workers and reducing the gap.” Emphasized.
Reporter Sejong Park Seung-gi
