The Impact of the Fragmentaion of Bargaining Institutions on Strike Activity in South Korea

Abstract

Academic research and policy discussions have noted a tendency toward greaterdecentralization in the structure of collective bargaining in many countries inrecent years. Previously unexamined is whether the structure of bargaining andunion structure or changes in those structures affect strike frequency. This paperargues that more fragmented bargaining and union structures affect the frequencyof strikes. Increased fragmentation in bargaining and union structures can makeit more difficult for labor and management to understand each others interestsand thereby increase the likelihood of miscalculation in collective bargaining. Datafrom Korea is used both to develop novel measures of bargaining and unionstructure (and the degree of fragmentation in those structures) and strikefrequency. The data and statistical analysis provide substantial evidence of anassociation betwen the degree of concentration in national-level unions and strikeactivity. In particular, regression analysis indicates that the greater is unionmonopoly (concentration) at the national level, the lower is industrial conflict.