The effect of bargaining structure change on dispute resolution process in Korea

Abstract

Union organization structure in Korea is being rapidly changed from company-level union structures to industrial union ones, especially after the 1997 foreign currency crisis. Through industrial union restructuring, unions are seeking a political power enhancement, the organization of nonstandard workers, and the reduction of differences in wage and working conditions by firm size. This paper tries to answer the question of whether the bargaining structure affects the impasse-resolution process with frequent mediations and strikes. The data show a significant effect of bargaining structure on the impasse-resolution process: a diagonal bargaining structure has a higher probability of requesting mediation service than does traditional single-company bargaining structure. Industry-wide bargaining has a higher probability of strike given a mediation was requested. A policy implication is presupposed based on empirical results.