The South Korean Government has threatened tough action if unions go ahead with strikes on Friday against employment law reforms.

The Labour Minister, Lee Ki-ho, said the strike would hurt South Korea just as it was beginning to regain international confidence. Extra riot police have been on the streets of Seoul to prevent protests by union leaders.

The South Korean Confederation of Trade Unions says it will strike unless there is a re-negotiation of the proposed laws, which had been agreed by the government, employers and unions.

The package includes measures to end lifetime employment guarantees and legalise large-scale redundancies.

Change of heart

The South Korean cabinet approved the agreement over the weekend and was set to turn it into legislation this month.

The union confederation changed its mind about the package and instead called on members to strike from Friday.

Public transport workers in Seoul are reported to be threatening to strike from Thursday. The authorities say that would be illegal and they have promised to take touch action against the leaders.

It is also reported that workers at Hyundai, Korea's largest conglomerate, have said they will strike from Friday.

Shares fall

South Korean stockmarket prices have fallen sharply in response to the strike threat because of fears that efforts to restructure the economy will be slowed.

The International Monetary Fund required the agreement as a condition for its $57bn package of bail out loans.

South Korean firms are widely recognised as being overstaffed and laws make it almost impossible for companies to sack workers.
 

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