Current Situation on Equal Remuneration in Korea

(ITUC-AP Regional Conference on Equal Remuneration for

Work of Equal Value, 25-26 June 2008, Bangkok)

Federation of Korean Trade Unions (FKTU)

Ratification of ILO Conventions on Women Workers in Korea No. 100 (Equal Remuneration for Men and Women Workers

for Work of Equal Value): Ratified in 1997

No. 111 (Discrimination in Respect of Employment and Occupation): Ratified in 1998

No. 156 (Equal Opportunities and Equal Treatment for Men and Women Workers: Workers with Family Responsibilities): Ratified in 2001

No. 183 (Maternity Protection): Not ratified. * Reason: The national legislation (Labor Standards Act) doesn’t

meet the ILO standard in terms of the length of maternity leave (currently 90 days)

National Legislation on Equal RemunerationEqual Employment Act (enacted in 1987, amended in 2001, 2005, 2007)

Article 8 (Wages): “An employer shall pay the equal wage for the work of equal value in the same business.”

• The criteria for the work of equal value: skills, efforts, responsibility, working conditions, etc., required to perform the work.

• A separate business established by an employer for the purpose of wage discrimination is considered the same business.

• Penal provision: imprisonment of 3 years or less / or a penalty of 20 million won or less (approx. USD 20,000)

National Legislation on Equal RemunerationEqual Employment Act (enacted in 1987, amended in 2001, 2005, 2007)

• Article 9 (Money and Goods other than Wages): “An employer shall not discriminate against men or women in managing welfare programs such as payment of money and goods or loans other than wages in a bid to support workers lives.

• Penal provision: 5 million won or less (approx. USD 5,000)

Example of Violation of Law

: In the case of banking sector, men were usually given higher wages by different wage systems for men and women in the past.

Although the differentiated wage system was abolished after the legislation of the Equal Employment Act, lots of non-regular workers in the banking industry, most of whom are women, still suffer from wage discrimination.

Wage Gap bet. Men and Women(2005, Ministry of Labor)

Total workers: 1,887,507 KRW- Women: 1,395,979 KRW- Men: 2,108,732 KRW

-> Women earned 67.8% of men’s wages (57.5 % in 1993, 61.3% in 1995, 66.6% in 2000, 66.9% in 2003)

Root Causes of Gender Pay Gap

- Women have shorter period of continuous service due to low skills, low education, childbirths, etc. (average period: women 4.0 years / men 6.6 years)

- More women are employed on a non-regular basis (women: 43.7%, men: 31.5).

- Women work shorter time due to childcare burdens and family responsibilities (monthly average working hours: women 190.4 / men 197.2)

- Women have less opportunities for training and education (Indirect discrimination still exists although gender equality is guaranteed by the law)

- Low paid jobs are predominantly occupied by women (nurses 97.2% / child-care workers 96.2% / hair dressers 83.9% / health and medical service workers 81.2%, school teachers 78.4%)

- Most women are employed in informal sector

Impediments in Eliminating Gender Pay Gap

Government: National laws are not fully implemented due to insufficient labor inspection.

Employers: They are still reluctant to implement measures to address gender pay gap in pursuit of labor cost reduction.

Trade unions: There are still differences in opinions between men and women.

FKTU Activities to Promote Equal Remuneration To provide a model collective bargaining agreement including the provis

ion on equal pay for work of equal value for affiliates. To conduct training and education both for women and men for consen

sus building and mutual understanding on gender equality. To hold workshops and seminars. To urge the government to fully implement the related laws. To present policy recommendations to relieve childcare burdens in orde

r to resolve the problem of career disruption. To organize the unorganized (esp., atypical women workers, women in

SMEs and informal sectors) To launch campaigns on the issue (to secure equal remuneration throu

gh achieving decent work for women -> active participation in the ITUC Global Campaign for Decent Work, Decent Life for Women).

Street March on the occasion of 2008 IWD“Elimination of Discrimination against Atypical Workers”

Active Participation in ITUC Global Campaign for

Decent Work, Decent Life for Women (3 April 2008)

Thank you very much

Federation of Korean Trade Unions

(FKTU)