Corea, República Popular Democrática de - Kaesong Industrial Zone – government control and no unions (2010, 2011)

Approximately 40,000 North Korean workers are making clothes, shoes, watches and other light goods in this zone, which has about 115 factories. The North Korean government selects worker representatives in Zone workplaces, subject to the approval of the South Korean company management.

Recruitment of workers to work in the Zone is controlled by the North Korean government. While article 32 of the KIC Labour Law states that workers should be paid directly in cash, in practice this does not happen. Since the Zone was opened, the North Korean government has demanded that all salaries be paid to the government, and Zone employers have acceded to this requirement. After making deductions for a government-controlled fund, the North Korean government pays the workers their salary. The continued use of this indirect payment system violates an agreement on the operation of the Zone made between the governments of North Korea and South Korea.

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