Collective Bargaining Process & Issues

May 23, 2003 C.W. Hyun / Paul Cho Kim & Chang

Mr. Chun-Wook Hyun

Kim & Chang Seyang Bldg. 223, Naeja-dong, Chongro-ku Seoul 110-053, Korea Tel: (82-2) 3703-1130 Fax: (82-2) 737-9091/3 E-mail: cwhyun@kimchang.com Member of the Korean and New York Bar Associations; received his law degree (LL.B.) from the College of Law at Seoul National University. He received a Master of Law Degree (LL.M.) from Harvard Law School and was associated with Sullivan & Cromwell, New York. He served as a member of the Special Committee for the Labor Law Reform. He gave a lecture on Korean labor and employment laws at Harvard Law School in 1993. He is a legal counsel to the Ministry of Labor and co-chairman of the Amcham HR Committee. He frequently writes and speaks on labor/management relations, foreign investment, M&A, HR and restructuring issues.

Mr. Paul Cho

Kim & Chang Seyang Bldg. 223, Naeja-dong, Chongro-ku Seoul 110-053, Korea Tel: (82-2) 3703-1157 Fax: (82-2) 737-9091/3 E-mail: phcho@kimchang.com

Admitted to Bar, Illinois; Foreign Legal Consultant at Kim & Chang; Loyola University of Chicago, School of Law; University of Illinois, Urbana-Champaign; State of Illinois, Cook County, Arbitrator; Office of the Illinois Attorney General, Chicago, Illinois; Sanchez & Daniels, Chicago, Illinois; Ministry of Finance, Republic of Korea; Illinois State, Chicago, American and Korean American Bar Associations; Listed in Euromoney Publications PLCs Guide to the Worlds Leading Labour and Employment Lawyers; American Chamber of Commerce, Korea; Watson Wyatt Employment Terms and Conditions-Asia Pacific (Korea Chapter, Co-Author); American Bar Association Section of Labor and Employment Law (Korea Chapter, Co-Author)

1. Management Obligation
- Bargain in Good Faith

2. Ground Rules
- Prior to starting main CBA negotiations

- Frequency / Off Hour / Agenda / Number of Reps from each side / Confidentiality / Minutes

3. Union Strategy
- Use Model Form of CBA

4. Counter Proposal from the Management Side

5. Role Play / Preparation for each Negotiation Session

6. Major Items of Collective Bargaining Agreement
- Structure of CBA (in general) union activities personnel matters working conditions industrial accident / safety issues collective bargaining process labor disputes

- Major Issues Membership Eligibility Union Shop or Open Shop Union Activities during Working Hours Full-time Union Officer Union Office Check - Off Use of Company Facilities Personnel Matters (Dismissal, DAC, Personnel matters for Union Executives) Working Conditions (Improvement) Non-Participants of Strike How to Resolve the Dispute

7. Types of Collective Action

Strike (Full or Partial), Slow down, Picketing Work-to-rule: Attire Strike, Collective Refusal of Overtime, Collective Use of Monthly or Annual Leave, etc.

8. Legal Process
- Report of Impasse (10-day mediation period) - Mediation Hearing - Majority Vote on Strike

9. No Replacement During Strike Period

- Not from outside : outsourcing, new hiring, subcontracting prohibited

10. Measures Available to Management against Union Activities

No Work No Pay Principle Lockout (defensive measure only) Against Illegal Union Activities - Civil Remedies: Damage Suit for Compensation Injunction / Provisional Attachment (over assets) - Criminal Remedies : Criminal Accusation Business Interference / Defamation - Internal Disciplinary Sanction :