Observation (CEACR) - adopted 2011, published 101st ILC session (2012)

Equal Remuneration Convention, 1951 (No. 100) - Republic of Korea (Ratification: 1997)

The Committee notes the comments from the Federation of Korean Trade Unions (FKTU), attached to the Government’s report.

Gender wage gap. The Committee recalls the high and persistent overall gender wage gap, especially when comparing data on the hourly total wages of regular and non-regular male and female workers. The Committee notes from the statistics provided by the Government that in 2009 the average monthly wages of female permanent workers in establishments with five or more full-time workers remained 33.5 per cent lower than men’s, with the gender wage gap (monthly wages) for women in their forties and fifties amounting to 40–45 per cent. The Committee welcomes the comprehensive data, disaggregated by sex, on hourly wages, and disaggregated by industry and occupation compiled in the 2009 Survey Report on Labour Conditions by Employment Type. The data show that when comparing hourly regular wages of male and female regular and non-regular workers, female non-regular workers earn 70.7 per cent of male non-regular workers and 48.6 per cent of male regular workers. When comparing data on the wage structure of permanent workers, according to occupation, the Committee notes that for most occupations, the total wage gap between men and women is largely over 30 per cent, and is particularly high for health, social and religion related occupations (46 per cent) in which women represent 80 per cent of the workers, and for education, professional and related occupations (40 per cent). Women represent 42 per cent of the clerks where the gender wage gap is 37.8 per cent; for service workers, where women constitute 61 per cent of the workers with the majority in hairdressing, wedding and medical assistance services, or cooking and food service occupations, the gender wage gap is 31 per cent. With regard to industries, the Committee notes that women are concentrated in manufacturing (which is the largest industry) with a gender wage gap of 36.8 per cent, in human health and social work activities (42 per cent wage gap), accommodation and food services (27.3 per cent wage gap), education (43 per cent wage gap), business facilities and support services (35 per cent wage gap), financial and insurance activities (36 per cent wage gap) and wholesale and retail trade (34.5 per cent wage gap). In the electricity, gas, steam and water supply, where women only represent 11 per cent, the total gender wage gap is as high as 45.8 per cent.

The Committee notes the comments by the FKTU that about 70 per cent of the non-regular workers are women and that to find trends in the gender wage gap one should look at the wages of all male and female workers, including non-regular workers. The Committee notes that in 2009, the hourly wage gap between regular and non-regular workers was the highest in wholesale and retail trade, manufacturing, and human health and social work, all industries employing a large number of women. With respect to occupations, the wage gap between regular and non-regular workers was 53.1 per cent for sales workers and 37.2 per cent for clerks and 27 per cent for service workers, where women also represent a high proportion among the workers. The Committee further notes that in a communication regarding the Discrimination (Employment and Occupation) Convention, 1958 (No. 111) the Korean Confederation of Trade Unions (KCTU) also draws attention to data from Statistics Korea (March 2010) indicating that the ratio of female to male wages was 61.6 per cent in 2010. Wages of male non-regular workers were 47.9 per cent of male regular workers’ wages, while female non-regular workers earned only 38.3 per cent of what male regular workers earned. The Committee encourages the Government to continue to collect and provide comprehensive data on the hourly wages of men and women, regular and non-regular workers, according to industry and occupation, so as to enable a continual assessment of the evolution of the gender wage gap with a view to determining appropriate measures to address wage differentials between men and women. Given the particularly high gender wage gap in certain sectors and occupations in which women are predominantly employed, the Committee asks the Government to indicate any measures taken or envisaged to ensure that the wages in these sectors and occupations are not set on the basis of gender-biased undervaluation of the work performed in these sectors.

Articles 1, 2 and 3 of the Convention. Equal remuneration for work of equal value – comparing remuneration of jobs of a different nature. The Committee recalls that the Ministry of Labour’s Equal Treatment Regulation (No. 422), limiting the possibility of comparing work performed by men and women to “slightly different” work, appears to unduly limit the full application of the principle of equal remuneration for men and women for work of equal value as set out in the Convention. It also recalls that the Supreme Court in its ruling of 14 March 2003 (2003DO2883) accepted the restrictive understanding of the concept of work of equal value in Regulation No. 422. The Committee notes the Government’s statement that the Equal Treatment Regulation was revised on 22 June 2010 to add non-discrimination in recruitment and hiring, wages and other money and valuable goods, education, assignment and promotion, and retirement age, retirement and dismissal. The Committee points out however that the prohibition of sex-based discrimination in wages will normally not be sufficient because it does not include the concept of “equal pay for work of equal value”. The Committee recalls that the principle of the Convention encompasses work of an entirely different nature which is nevertheless of equal value. Given that the amendment of Regulation No. 422 does not appear to broaden the restrictive scope of comparison and given the very wide and persistent gender wage gap, the Committee urges the Government to take steps to amend Regulation No. 422 with a view to bringing it in to full conformity with the Convention, and to report on the progress made in this regard.

Application in job-based wage systems. The Committee notes the results of the research conducted by the Ministry of Labour emphasizing the importance of the principle of equal remuneration for work of equal value, and the use of job evaluation, in the context of job-based pay systems. Attention is drawn to wage discrimination between men and women or between regular and non-regular workers that may result from job-based pay schemes when jobs are separated according to gender and employment status, or in the case of partial job-based pay schemes in which wages are also determined by other factors (years of consecutive service, performance, etc.). The research confirms the shift towards job-based pay schemes since the adoption of the Act on the Protection, etc., of Fixed-term and Part-term Employees. However, it also draws attention to the introduction of a separate job category system linked to job-based pay schemes by some employers, thus creating job categories to which only men or women are assigned resulting in gender discrimination in terms of hiring, recruitment, assignment and so on. The Committee further notes that the Workplace Self-check Manual for Equal Pay for Work of Equal Value is being distributed to employers to use on a voluntary basis, and to prevent unfavourable treatment of workers in terms of employment and wages. The Committee asks the Government to indicate the follow-up given to the findings of the research on job-based wage systems, including measures to address the assignment of men and women to separate job categories. Please indicate the number of enterprises that have adopted job-based wage systems and in which sectors, and the number that have undertaken objective job evaluation exercises to this end. Given the very high and persistent gender wage gap, the Committee also asks the Government to provide further details on any other measures taken to promote the application of the principle of the Convention at enterprise level in the context of human resource management and pay systems, and to indicate the results secured by such action.

Application of the principle beyond enterprise level. The Committee recalls that the reach of comparison should be as wide as allowed by the level at which wage policies, systems and structures are coordinated (General Survey of 1986, paragraph 72). The Committee notes that, according to the FKTU, no progress has been made with respect to measures taken or envisaged in this regard and that it is necessary to institutionalize the application of equal remuneration for work of equal value at industry as well as enterprise level. The Committee asks the Government to indicate any steps taken to promote and ensure the application of the principle of equal remuneration for men and women for work of equal value beyond the level of the enterprise, and to report on the progress made in this regard.

Enforcement. The Committee notes the Government’s statement that since the Supreme Court’s ruling (2003DO2883) no court decision has been given on the principle of equal remuneration for men and women for work of equal value. It also notes the Government’s indication that guidance and inspection has continued to ensure compliance with the principle of equal pay for work of equal value, and that in April 2010, a team was set up by the Korea Labour Foundation to promote discrimination-free workplaces in six regions through counselling of women and fixed-term workers on various forms of discrimination in the workplace, and education of workers and employers on how to prevent it. In 2009, inspection covered 1,272 workplaces with female workers resulting in the detection of 5,679 violations, almost all of them settled through administrative proceedings resulting in redress. However, out of these, only one violation concerned wage discrimination while 4,737 violations were classified as “other violations” and were apparently unrelated to discrimination issues. The Committee further notes that, according to the FKTU, the legislation is not being strictly enforced. The Committee asks the Government to take additional measures to improve the enforcement of the legislation concerning equal pay and to increase the capacity of the labour inspectorate to detect and address cases of wage discrimination. The Committee also asks the Government to provide information on the specific activities of the labour inspectorate, the training they receive and the nature and substance of the cases addressed. The Committee also asks the Government to provide information on the results of the counselling and educational activities launched by the Korea Labour Foundation that specifically relate to promoting the application of the principle of the Convention. Please also continue to provide information on any new court decisions regarding the principle of equal remuneration for men and women for work of equal value as guaranteed under the Equal Employment Act.