Korean workers back on the job

By Alex Frew McMillan
CNN Hong Kong

Union workers march in an antigovernment rally in Seoul on Tuesday to protest a shorter week

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SEOUL, South Korea (CNN) -- Korean workers are back on the job Wednesday after a one-day work stoppage to protest a shorter work week.

The Korean Confederation of Trade Unions (KCTU) told workers to return to work Wednesday. Around 120,000 workers went on strike Tuesday, affecting about 165 companies.

The government has introduced a bill to shorten the work week to five days, something it hopes to achieve by July 2003. But union workers say that will lead to "unfair" cuts in wages and benefits.

Workers held protest rallies in Seoul and 20 other cities. The walkout was led by the Korea Metal Workers' Federation, part of the KCTU.

The KCTU was also calling for the government to drop a bill creating a public-service association for civil servants.

The union group ended its strike after the National Assembly's labor committee agreed to postpone debate on the bill until sometime next year.

Around $82 billion in lost production

The work stoppage caused more than 100 billion won ($82 million) in lost production.

Car companies were particularly hard hit, with Hyundai Motor expecting a loss of 44.5 billion won ($36.6 million) in its output.

Hyundai's assembly lines stand idle Tuesday, a stoppage estimated to cost the company $36.6 million

Its Kia Motors subsidiary was also hit by a walkout and expects a loss of 16 billion won ($13.2 million).

Employees at car-parts companies, tire producers, machinery manufacturers and other heavy industrial companies also took part.

Hyundai Motor stock is up 6.13 percent in late morning trade on Wednesday, helping Seoul's benchmark Kospi to a 2.29 percent rise.

The Korea Employers Federation directed management at all the strike-hit companies to take strong legal action against the strikes.

Labor disputes are common in Korea. But the stoppage raises the prospect of intensified unrest ahead of presidential elections in December 19, at which Kim Dae-jung must step down after ending his five-year term.

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