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Find Right Person in Right
Place
By Tom Coyner
Korea Times
June 20, 2006
Last week we began our review of the basics of successful labor relations
in Korea
for multinational companies. This week we will conclude this high-level
review starting with a key position, the industrial relations manager, and
end with experienced executives’ top 20 suggestions.
A company needs to have an appropriate officer in the business organization
who has a special personal sensitivity and recognized ability in mediating
labor conflicts. A senior officer respected by the employees may be an
ideal candidate to be a combination of personnel and labor relations
manager. In some cases, a retired senior manager may be considered for this
critical position. Such a person would probably have extensive experience
in negotiating some sticky labor problems. Particularly in Korea’s
traditional culture, a person ``of a certain age’’ has a
decided advantage in garnering respect for the wise counsel that he (or
she) has to offer.
At least one foreign company that had taken over management control of a
Korean company has learned the hard way about the shortcomings of hiring a
human resources manager who has only worked in other multinational
corporations. Particularly when dealing with the dynamics of a
long-standing labor union, the newly hired English-speaking human resources
(HR) manager who had dealt only with the relatively docile unions of
smaller multinational business units was at a loss at ``crunch
time.’’ So hiring the right HR manager with the right kind of
union experience can be critical.
In dealing with labor unions, such a manager has to be fully aware of the
union's methods and tactics, and should be able to anticipate union
demands. He must always be one step ahead of the union officials while
still holding the needs of the employees in high regard; then he will be
successful in labor negotiations.
Inter-Personal Company Activities
A positive preventive method for warding off possible labor disruptions
is to build a community or family-like atmosphere through company-sponsored
activities such as picnics and sports events. There are specific incidents
where these have proven remarkably successful in building morale and
associated productivity.
These activities include numerous possibilities: from editing an in-house
web site to flower arranging, from a baduk (go) club to a mountain
climbing group. Such diversions are far more productive and economical than
time lost to strikes and sabotage. One astute local labor relations manager
was successful in channeling a union activity into beautifying the factory
premises. ``Keep 'em busy with something worthwhile!’’ Again,
the astute foreign manager joins in whenever appropriate to build personal
bonds with union and other employees.
Fair Treatment
Employers can inspire confidence and respect by always being fair and
reasonable in dealing with employees in every situation. It is sometimes
necessary to go beyond the codified stipulations of labor law, adapting to
various local conventions and unwritten practices in rewarding employees.
Handling mistakes by staff members without compromising standards requires
a great deal of diplomacy and understanding to prevent the errant workers
from losing face. To avoid office tension and belligerence, fair, just
treatment by the manager is crucial.
Documenting Work Policies
Publicizing employment regulations, office procedures, and work rules
clearly, in written from, will prevent many potential problems. Such
details as work hours, benefits, compensation, vacations, job descriptions,
and expectations should be put in document form and signed by new employees
to alleviate later misunderstandings and possible disputes.
These documented, signed regulations serve as guidelines for employees and
stipulate their code of conduct and compensation policy. They make clear
what is expected of workers and how, in turn, they will be compensated for
their services.
If an employee files a complaint against company executives, the mediating
labor authorities tend to support the employee rather than the company. So,
a signed document can save an employer many unnecessary problems.
A tradition in some industries, such as banking, is to encourage
responsible union leadership by routinely promoting union leaders into
management upon the completion of their union duties. With the lure of a
likely promotion looming in the near future, union leaders are more likely
to consider the long-term results of their activities and negotiations more
closely.
What one should not do is emulate an expatriate representative
director’s example of some years ago at a major subsidiary. The
executive had come up through the ranks on the technology side of the
business, and had relatively limited personnel management experience. Rather
than building personal relations whenever possible, he stayed in his office
and ``ran things by the book,’’ frequently relying on outside
legal counsel in making decisions. The net result was that the employees
considered him remote and hostile to the union. That led to three years of
major labor frictions causing serious harm to the company’s Korean
operations as well as running up major legal expenses.
It is also important to keep in mind that Korea’s largest corporate
conglomerate, Samsung, is union free _ as are some of the largest foreign
companies, such as Merck. One need not resign oneself to having a labor
union. If one is ahead of the curve in treating Korean employees fairly and
competitively _ and most important, taking a continuing, sincere interest
in their welfare by building close relations with the staff whenever
possible _ it is possible to be both union free and unburdened by messy
labor problems.
Top 20 labor relations tips from experienced expatriate senior
executives in Korea,
interviewed for an upcoming book:
1. At all times, show your union respect -- even when things get
rough. It is critical to protect the ``face’’ of union
negotiators whenever possible so that negotiations remain focused on
substantive issues.
2. Don't try to demonize or humiliate the union; don't duck issues
or play games.
3. Don't try to weaken your union. A weak union looks for problems to
exploit, whereas a strong union focuses on truly important matters. In a
stable environment, most problems with a union reflect internal union
issues; few concern at-hand business issues.
4. Sharing information is critical for building trust.
5. Communicate frequently and openly about the company’s real
situation, both with the union leadership and with employees, so that
informed employees can in time differentiate between legitimate business
concerns and union political issues.
6. Athletic and social events are a very important way to signal to the
rest of the employees that the union and management share mutual respect.
7. Put in the necessary time with the union -- even if it may seem
excessive compared to your past postings.
8. Sometimes the real powers on the union side are not on the negotiating
team, so it can be critical to identify who these people are.
9. Often the real deals are made outside of the formal CBA negotiations, so
it is important to build personal relations with union negotiators.
10. Spend even three times as much time discussing union relations with
your management team as directly communicating with the union, since one
bad manager can destroy years’ worth of bridge-building.
11. Senior local managers often harbor grudges and prejudices against the
union. You may find that 90% of your Korean managers need to change their
thinking. It is just as important to work for change with Korean managers
as with your union.
12. Recognize that in most instances management has much more power and
many more resources than the union. So if a certain distance separates
labor and management, management should travel 90% and labor 10%. Then,
together, the two can move on and steer back toward the center.
13. Negotiations in Asia are by nature not
win-win, but zero sum. Western negotiators tend not to recognize this
point.
14. Negotiations are not limited to the time of formal CBA talks. A
skillful general manager is always negotiating, and will sometimes try for
a major concession from the union shortly after a CBA has been signed, when
the union leadership may be emotionally worn out.
15. Unions are like adolescents, in that they are constantly probing to
seek out their limits. It is important to clearly and concretely
communicate those limits, as well as your governing principles.
16. A common problem in foreign companies is allowing unions a voice in
promotions. Promotions are a key management control vehicle. Koreans value
promotions highly, for social as well as economic reasons, and management
should retain full control over them to keep control of employees.
17. Since police will only permit one demonstration at a given time and
venue, management may wish to schedule one or more preemptive
``demonstrations’’ with the police at sensitive locations as
CBA negotiations approach, before the union attempts to schedule its own.
18. A common mistake is that foreign companies do not give adequate
authority to their negotiators. The chance to successfully conclude a CBA
may come at a weird time, such as 2 a.m. If the company negotiator must
first check back with the head office, the delay may allow that opportunity
to slip away.
19. Another common error is that foreign firms are too impatient to
conclude a CBA. In their rush they weaken their position, and that can be
very expensive. Union leaders have been known to find out the
negotiators’ departure flight times so they can plan their strategies
accordingly.
20. Try to outsource employment as much as possible to reduce the power and
influence of the union.
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