South Korean Airlines and Hospital Workers Engage in Ongoing Strike and Threats of Labor Unrest

Strategic Insights -

Airline operators and hospital workers in South Korea are embroiled in a labor dispute, with unions demanding better working conditions, higher pay, and greater participation in company decisions. Asiana Airlines, one of the country's largest carriers, has seen its operations crippled by a strike by unionized pilots, resulting in the cancellation of numerous domestic and international flights. Meanwhile, hospital workers and Korean Air pilots are also planning to go on strike in a bid to secure better pay and working conditions.

Key Takeaways:

  • Asiana Airlines has canceled 81 of its 168 domestic passenger flights and four of seven cargo flights due to the strike by unionized pilots, with all 115 international flights currently operating normally.
  • The strike has resulted in losses of 2.5 billion won (US$2.4 million) in sales for Asiana Airlines, with the next day likely to see increased losses as three cargo flights have been suspended.
  • If the strike continues until the end of the week, Asiana Airlines estimates it will suffer damage of 25 billion won (US$22.7 million) in air freight services, 10 billion won in international flights, and 3 billion won in domestic flights.
  • Korean Air pilots are planning to launch a walkout on Monday, with union leaders conveying guidelines for "intensified struggle" to its union members by Wednesday, potentially leading to industry-wide labor unrest.
  • Hospital workers in South Korea are threatening to go on strike on Wednesday unless their demands for a 9.89-percent pay hike, enforcement of a five-day workweek, and an end to discrimination against non-regular workers are met.
  • Over 150,000 workers affiliated with the Korean Metal Workers Federation are planning to hold four-hour strikes on Wednesday and Thursday if their calls to strictly regulate the buying back of imports from overseas plants go unheeded.

Statistics:

  • 100: The number of hospitals across South Korea where unionized hospital workers are involved in the labor dispute.
  • 15,000: The estimated number of nurses and hospital administrative workers involved in the strike.
  • 2.5 billion won (US$2.4 million): The estimated losses suffered by Asiana Airlines due to the strike on Monday.
  • 25 billion won (US$22.7 million): The estimated damage Asiana Airlines expects to suffer if the strike continues until the end of the week.
  • 168: The number of domestic passenger flights operated by Asiana Airlines.
  • 7: The number of cargo flights operated by Asiana Airlines.

Sources:

  • Asia Pulse, "Asiana Strike Enters Second Day, Disrupting South Korean Air Services" (July 18)
  • Yonhap, "Korean Air Pilots to Launch Strike on Monday, Union Leaders Convey Guidelines for 'Intensified Struggle'" (July 18)
  • Korea Times, "Hospital Workers Threaten Strike on Wednesday" (July 18)
  • Yonhap, "Korean Metal Workers Federation Plans Four-Hour Strikes on Wednesday and Thursday" (July 18)