Unionization in South Korea and Feminization of Labor in Indonesia During the Process of Capitalist Development - Essay Example

Unionization in South Korea and Feminization of Labor in Indonesia During the Process of Capitalist Development Unionization in South Korea The commencement of capitalism development in south Korea concedes with strict regulation of labor relations with the collective power of the working class being suppressed to ensure the workers were disciplined. This strict perception of labor relations in South Korea was passed over from the period of Japanese colonial regime of the 1950s to the consequent governments that aimed at accumulating capital while repressing the working class (Koo, 2001). This form of labor relations between the state and corporations in one hand and the workers in the other was sealed in the 1970s with the Park regime instituting an emergency decree that annulled all existing workers’ right. The consequence of this government decree is that corporations gained unlimited control over their workers and were able to institute a system of command and discipline that resembled a military organizational structure. Additionally, this situation led to the development of a labor relation within the country where the working class did not possess the social power to push for their welfare. The economical arrangement in South Korea in the 1960s and 1970s, which saw the accumulation of wealth for the capitalists, was motivated by the establishment of a "corporatist state” where the role of the government is to selects given policies that are then given to particular citizens and agencies as implementers. This form of government is distinct from one that follows a pluralist approach where government policies are as a result of lobbying and pressure from interested groups who demand the government to provide an environment that encourages their functioning in the economy. The South Korean government was therefore keen on developing a number of essential industries that could benefit from formulation and dispensing policies to drive the labor intensive industries. After the end of the Korean War, the government identified the transformation of the agrarian economy into an export oriented industrial state with development of labor-intensive manufacturing industries being an important pillar for this Endeavour (Koo, 2001). The consequence of this government policy was the emergence of corporations referred to as "chaebols". These working principles between the government and the corporations worked on the basis that the government provides credit, tax incentives and low-interest loans through state owned banks while the corporations use the granted subsidies to drive the industrial development of the country. This arrangement between the corporations and the government marginalized workers who whose working conditions were left to deteriorate. In addition to providing the corporation with what was seen as the idle environment, the government also kept wages low but constantly revising the payment levels for workers in these industries (Koo, 2001). In essence, the South Korean rapid industrialization was based on maintaining a cheap, low-skilled labor through an industrial relations policy that was to reduce labor conflicts while at the same time maximizing workers’ shop-floor productivity. Therefore, the following years saw increase in the gap between employee wages and rate of labor productivity thereby stimulating the growth of class-consciousness and unity by the workers. Existing trade unions such as (Federation of Korean Trade Unions) FKTU were no granted autonomy during this period having been restructured since 1961 (Koo, 2001). The restructuring of FKTU into sixteen industrial federations to encompass 2,359 unions and 336,974 of their members was seen as an effective strategy to remove rebel union leaders from these organizations. The government was therefore able to keep within the union ranks only those considered loyal to the regime. The government and corporations were able to minimize the influence of independent trade unions through measures to ensure they remained small and could be dissolved easily through sabotage by the government and the corporations. Therefore, unions were weakened and could only follow policies introduced by the government and the corporation. During the late 1970s, democratic trade union movements developed to respond to worker struggles in different industries such as the textile industry where the struggles workers in the Dongil Textile Company since the mid-1970s were highlighted. It is however the self-immolation of Jun Tail, a textile worker that was of a major consequence to the government as it highlighted the violent suppression the worker’s struggle. The events that followed saw the government of President being overthrown after the eruption of nationwide campaigns to ouster him. However, any progress that could have been made was curtailed by a military coup that saw worker’s rights being represses even more. The new government under Chun Doo-hwan ensures firm control labor through active measures aimed at eliminating forces of opposition posed by democratic labor unions where many union leaders were taken into concentration camps the mediation role played by the government in labor conflicts was reinforced while also removing the participation of third parties in labor conflicts in order to lock out religious groups and students from participating in the labor movement. The churches were targeted in this burn due to their involvement in activism by giving shelter and guidance to unionists who opposed the state and corporation’s suppression of independent labor unions (Koo, 2001). This move was however not successful in eliminating all the forces of oppositions to the government and its control of the FKTU as there were still a number of independent trade unions in existence. The situations workers in South Korea found themselves in during the 1970s and 1980s resulted in the development of underground unionists who collaborated with other activists calling for a more democratic society. Notable unions formed during this period are the Korean Labour Welfare Association of 1984, Seoul Labour Movement Alliance established in 1984 and Inchon Workers’ Alliance all with the aim of developing an alternative force that would challenge the monopolistic functioning of corporations and the subordination of FKTU by the government. The existence of these independent labor groups was important for the process of worker uplifting as they were able to organize a number of strikes at different workplaces therefore being useful for the later stages of calls for improved labor relations that would follow from 1987. From 1987, there has been continued eruption of independent trade unions aiming at breaking the existing relationship between the state and the corporations. These efforts were greatly curtailed by the continued interdependence between the government that relies on the corporations to steer the economy in exchange for state subsidies and enactment of favorable policies. The government’s controlled of independent trade unions was largely made possible by the existence of a disintegrated independent activism that could only function at factory level therefore making it easy to deal with their activities. The needs of the independent labor unions were also never accommodated within the government controlled FKTU which continued to protect the interests of the state and that of the corporations. The government maintained separate functioning of the independent unions and FKTU through a divide and rule policy which saw the awarding of special considerations such as legal recognition on bargaining and financial in supports of FKTU members. The independent trade unions therefore become weak and disintegrated therefore lacking any meaningful bargaining power to immediately improve conditions for the members (Koo, 2001). An essential move for the independent labor unions has been the development of a national union to fight the repressive policies of the state and the corporations. This was achieved through the formation of Korean Confederation of Trade Unions (KCTU) in 1995 which has been able to withstand constant internal strife and factionalism to become an important force in neutralizing the powers of the FKTU in labor relations. KCTU has continued to grow over the years with both its membership and influence over labor relations being experienced in different avenues (Koo, 2001). Feminization of Labor in Indonesia during the Process of Capitalist Development Caraway argues the export oriented industrialization in Indonesia resulted in the feminization of labor in the country with female employees being used in labor intensive industries. Capitalist development in Indonesia resulted in the production of industries whose aim was to reduce costs of production while maintaining higher profit margins. Caraway perceives feminization of labor in Indonesia as being the result of popular perception that female employees were “patient, disciplined, and diligent” (Caraway, 2007: 30). However, feminization of labor Indonesia was not only due the influence of export oriented industrialization as argued by many scholars who have argued. Based on this argument by Caraway (2007) feminization of labor in Indonesia took place through a number of waves with the textiles industry which includes factories for spinning and weaving being a key drivers in the initial stages. Consequently, the first wave was characterized by increased participation of women in the job market especially in the labor intensive industries that were in need of cheap labor. This first wave in feminization of labor can be viewed in the contest of import-substitution industrialization (ISI) that was in place from 1968 to 1978. This period is characterized by government policies aimed at producing for the local market as opposed to concentration on exportation. The ISI initiative was supposed to be reliant on export of oil for foreign exchange but it failed since the sales in oil was not able to meet the demands of the economy. Consequently, the government revised its policies to allow local investors in industries such as plywood, garments and textile to export their products while also devaluing the Indonesian Rupiah. The introduction of local manufacturers into the government’s export policy led to a positive shift in the country’s economic fortune which grew rapidly during subsequent years (Caraway, 2007). The changes made by the government herald the introduction of liberal market for export industries therefore steering the country towards export oriented industrialization. The consequent growth of the country’s industries as a result to increased export by industries that had already been established and the new entrants led to a number of economic and social transformations in the country. While the number of employment positions was rising due to increased investments, the level of female education was also on the increase therefore providing a chance for women to join the work. Additionally, the participation of women in different employment positions were made possible by the falling fertility rates while the enforcement of bans on night work for women was also relaxed. The Indonesian shift to export oriented industrialization led to the shift in perception of women where they were increasingly being seen as important source of labor for the rapidly developing industries. This shift was also apparent in the government discourse the previously help notion of women as being important in national development through their role bas mothers and wives began to change and instead supported their participation in the country’s economic activities. According to Caraway (2007), the shift in government’s perception of women was partly due to continued presence f international organizations that wanted to gender equality as well as women’s role in development. The government responded to the new social and economic situation by changing a number of policies that resulted in the country adopting a national economic policy statement that asserted on the importance of improvement in industrial skills for women as well as in education to prepare them for the growth in labor within the country. The government policies that were introduced to improve the participation of women in the labor market were also accompanied by different government efforts to improve the level of foreign investment in the country. An important strategy used by the government to attract more foreign investments to drive the export oriented industrialization is the marketing of Indonesia as a country with low wage labor force. To deliver this promise to the investors, the government had to first of all limit the power held by labor unions to ensure the control of wage bill is left to government agencies therefore advertising the country as a an investment destination where the wages are controlled by the government and strikes are banned. By 19734, the government ensures control of the country’s labor through introduction of a ban to all activities of independent trade unions while also introducing a new state control union called the Federasi Buruh Seluruh Indonesia (FBSI). The FBSI did not exist to protect the interests of the workers but that of the government and their international business partners. Banning activities of trade unions provided the ground for establishment of an exclusionary labor regime where the worker was eliminated from any discussion of their conditions. This condition was necessary for the state to influence the hiring large numbers of female employees with any form of opposition on the basis of the economy or religion. Caraway (2007) supports this conclusion noting by demobilizing the existing labor unions and banning political parties in the early 1970s while making FBSI ineffective in challenging the state policies, the government provided a an environment conducive for feminization of labor in Indonesia. According to Caraway (2007) this period when independent labor unions become infective while the economy shifted from being driven managed ISI to one that seek to improve export. With the second wave of feminization of labor in Indonesia taking place in the period when the government was initiating significant reforms in labor relations, the third wave commenced with policies developed to attract foreign investors. This third wave mainly focused on attracting investors in the industries such as footwear and electronics through the established export processing zones. One of the consequences of government investment into industrialization was the rise of capitalist corporations that collaborated with the government to take advantage of the cheap labor offered by women. The multinational corporations where able to use the available labor to propagate discriminatory practices in hiring female workers based on the existing societal structurally subordinated of women within both the labor market and the family. The discrimination of female employees was through offering low wages while also maintaining “them in repetitive monotonous tasks with no job security or advancement opportunities”. Caraway (2007) asserts that the waves of feminization in the region was due to the transformations in the international division of labor and the cheap labor offered by women due to the law wages per worker. It is noted that the period from late 1960‘s to early 1970s experienced the transfer of multinational corporations from first world countries to cheaper production sites in overseas countries. This transfer also came at a time when the developing countries such Indonesia were ready to embark on export-oriented industrialization policies. There was a need for “cheap and easily exploitable labor to fuel export drives” with the realization that remaining competitive in the international market could be negatively affected by high labor costs (Caraway, 2007: 16). The labor situation in both South Korea and Indonesia proves Karl Marx’s assertion that capitalism flourishes based on the exploitation of workers by the bourgeoisie who control the factors of production and that this system of exploitation will be crashed by the proletariat is true. In line with Marx’s assertion, workers in South Korea and Indonesia were faced with poor working conditions that and low wages which while the corporations continued to accumulate massive profits. The government aimed at maintaining the competitiveness of essential industries by working with corporations to keep the wages low while denying workers there rights to form unions and to negotiate for improved terms. In the case of Indonesia feminization of labor was an approach used by the corporations to maximize their profits while paying low wages to the workers. The corporation’s preferred female to male workers since women did not demand higher wages compared to men (Caraway, 2007). In his theory of social materialism, Marx’s disapproval of capitalism is based on the view that it alienates the bourgeoisie from proletariat, which is a condition for social tensions between the owners of factors of production and the workers. The increased tension between the two groups will lead to a revolution with the workers taking control of the factors of production from the bourgeoisies. Marx gives the reasons for the collapse of capitalism through a revolution as the increasing misery of the proletarian as the capitalist seeks to extend the profit margins through exploitation of the workers in addition to declining profits, and periodic and deepening crises coupled with business cycles. The alienation leading to revolution is based on the belief that as wealth continues to be concentrated along the factory system, so is the revolutionary working class who are becoming more frustrated with their situation. Marxism asserts there is no escape from the pending social struggles that has been generated by intense rivalry and antagonism between the bourgeoisie and proletariat as well as capital and labor. The class struggles due to buildup of tension between workers and the owners of factors of production are evident in the situation happening in South Korea. The continued frustration of workers through measure that limit their participation in negotiation for improved working conditions has historically been a ground for tension between the workers and corporations which are supported by the government. Just as Marx envisioned, the exploitation of workers provides a ground for revolution to remove the ruling class that supports exploitation of workers by the corporation. Workers in South Korea have been involved in a number of revolutions that led to the removal leaders such as Park Chung-hee and Syngman Rhee. Workers were able to rise against the government to demand improved conditions for the workers whose wages were low to increase the competitiveness of the government policy of export oriented industrialization. However, Marx argument that a revolution was the only effective means for workers to end exploitation might not be true given the number of concessions that the governments have given to workers. Ending exploitation of the workers by the government and corporations in the contemporary world must not necessarily be as a result of a political revolution. Continued democratization in these countries has provided a ground for the workers to channel their grievances through exiting legal frameworks. For instance, the KCTU in South Korea has been able to challenge the dominance of state favored FKTU over the years. Coming from a period when independent labor union had been banned, KCTU has achieved a lot in the country’s labor relations as it has gain the legal status to represents it members. References Caraway, T. L. (2007). Assembling women: The feminization of global manufacturing. New York: Cornell University Press. Koo, H. (2001). Korean workers: The culture and politics of class formation. New York: Cornell University Press. Read More