South Korean President Lee vows to crack down on labor stoppages

Last week, the government sent in 2,500 riot police to break up a strike at an auto parts maker that had threatened to disrupt production at Hyundai Motor and Kia Motors, whose combined sales are fifth in global car sales.

In a show of force, riot police decked out in body armor and equipped with shields, outnumbered the protesters by about five-to-one.

“The public is never going to forgive any attempt to undermine an entire industry through a strike at one work place,” Lee said in a national radio address on Monday, noting the striking factory workers were relatively well paid, taking home on average 70 million won (US$65,000) a year.

On Monday, union workers at Standard Chartered First Bank walked off the job opposing a management plan to change their terms of employment to annual salary contracts.

The stoppages came amid rising public discontent over inflation, a growing rich-poor divide and welfare issues, while the country's rising household debt has worried economists.

The crackdown was the latest in Lee's tough response to action by unions and is aimed as much at curbing their powerful political influence, experts say.

Unionized labor is seen as an obstacle for more investment both by domestic manufacturers and by overseas investors who see them as responsible for a rigid and volatile labor market.

“What we need is a mutually co-existing economy where cooperation between the labor and management raises productivity which leads to investment and more jobs,” said Lee, a one-time boss of one of the country's big construction firms.

Until recent years, South Korea was notorious for violent protests and union-led stoppages, but Lee's no-nonsense approach has largely stopped such action.

Some economists have expressed concern that Lee's tough stance may be excessively anti-union, especially in light of his pledge to pursue growth that benefits all, not just the rich.

“He's had some close aides involved in scandals and is going into the end of his term, and he does like to take things head on, but he could have taken on a more measured approach,” said Kwon Young-joon of Kyunghee University in Seoul.

Lee's popularity has nose-dived in recent months and last week's industrial action raised worry about protests this summer, as youth unemployment remains high and the government comes under pressure to reduce university fees.

The ruling Grand National Party and the opposition Democrats are running neck-and-neck in opinion polls ahead of parliamentary and presidential elections next year.

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