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

Abstract

Academic research and policy discussions have noted a tendency toward greater decentralization in the structure of collective bargaining in many countries in recent years. Previously unexamined is whether the structure of bargaining and union structure or changes in those structures affect strike frequency. This paper argues that more fragmented bargaining and union structures affect the frequency of strikes. Increased fragmentation in bargaining and union structures can make it more difficult for labor and management to understand each others' interests and thereby increase the likelihood of miscalculation in collective bargaining. Data from Korea is used both to develop novel measures of bargaining and union structure (and the degree of fragmentation in those structures) and strike frequency. The data and statistical analysis provide substantial evidence of an association between the degree of concentration in national-level unions and strike activity. In particular, regression analysis indicates that the greater is union monopoly (concentration) at the national level, the lower is industrial conflict.