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North Korea - Compensation & Benefit Legislation


CAPITAL

P’yongyang

 

CLIMATE

Temperate climate with rainfall concentrated in the summer.

 

LANGUAGES

Korean

 

LEGAL SYSTEM

North Korea’s legal system is based on German civil law system with Japanese influences and Communist legal theory. North Korea has no judicial review of legislative acts. North Korea has not accepted compulsory ICJ jurisdiction.

 

CURRENCY

North Korean Won (1 USD = 2.20000 KPW as of May 15, 2002).

 

NORTH KOREA - COST-OF-LIVING

ERI's Relocation Assessor is a recommended source for cost-of-living data.

 

NORTH KOREA – EMBASSY/CONSULATES

The United States does not have an embassy in North Korea. The Swedish Embassy in P'yongyang represents the U.S. as consular protecting power.

 

North Korea does not have an embassy in the United States.

 

NORTH KOREA - HOLIDAYS

 

NORTH KOREA – LEAVE

Annual Leave: Paid leave is provided per the constitution.

 

NORTH KOREA - MINIMUM AGE

According to the Constitution, the State prohibits work by children under the age of 16 years.

 

(Section 6.d. Acceptable Conditions of Work, North Korea – Report of Human Rights Practices, 2001, U.S. Department of State.)

 

NORTH KOREA - MINIMUM REMUNERATION

No data is available on the minimum wage in state-owned industries. Until the recent food crisis, wages and rations appeared to be adequate to support workers and their families at a subsistence level. Wages are not the primary form of compensation since the State provides all educational and medical needs free of charge, while only token rent is charged.

 

(Section 6.e. Acceptable Conditions of Work, North Korea – Report of Human Rights Practices, 2001, U.S. Department of State.)

 

NORTH KOREA - REMUNERATION

ERI's Geographic and Salary Assessors are recommended sources for international remuneration covering 189 countries.

 

NORTH KOREA - REPORT OF HUMAN RIGHTS PRACTICES (2001, U.S. DEPARTMENT OF STATE)

Section 6 Worker Rights

 

a. The Right of Association

 

Nongovernmental labor unions do not exist. The KWP purports to represent the interests of all labor. There is a single labor organization, the General Federation of Trade Unions of Korea, which is affiliated with the formerly Soviet-controlled World Federation of Trade Unions. Operating under this umbrella, unions function on the classic "Stalinist model," with responsibility for mobilizing workers behind production goals and for providing health, education, cultural, and welfare facilities. Unions do not have the right to strike.

 

The country is not a member of, but has observer status with, the International Labor Organization.

 

b. The Right to Organize and Bargain Collectively

 

Workers have no right to organize or to bargain collectively. Government ministries set wages. The State assigns all jobs. Ideological purity is as important as professional competence in deciding who receives a particular job, and foreign companies that have established joint ventures report that all their employees must be hired from lists submitted by the KWP. Factory and farm workers are organized into councils, which do have an impact on management decisions.

 

There is one free enterprise zone (FEZ) in the Rajin-Songbon area. However, there are no reports of special hiring and other labor practices in the FEZ, and it is believed that workers in the FEZ are carefully screened and selected. The Korean Peninsula Energy Development Organization negotiated a separate protocol and service contracts for workers at the site of its light water reactor project. The government agency, which supplied the labor to KEDO, bargained effectively on the workers behalf (see Section 6.e.).

 

c. Prohibition of Forced or Compulsory Labor

 

In its 2000 and 2001 reports to the U.N. Human Rights Committee, the Government claimed that its laws prohibit forced or compulsory labor. However, the Government frequently mobilizes the population for construction projects. Military conscripts routinely are used for this purpose as well. "Reformatory labor" and "reeducation through labor" are common punishments for political offenses. Amnesty International reports that forced labor, such as logging and tending crops, is common among prisoners. School children are assigned to factories or farms for short periods to help meet production goals (see Section 5).

 

The Constitution requires that all citizens of working age must work in full compliance with working discipline and working hours. The Penal Code provides for the death penalty for any individual who hinders the nation's industry, trade, or the transport system by purposely failing to fulfill a specific duty. It also states that anyone failing to carry out an assigned task properly is subject to at least 5 years in prison (see Section 6.e.).

 

There are reports of the trafficking of women and young girls among citizens crossing the border into China. Many become brides, but some work in the sex industry. Many reportedly are held as virtual prisoners (see Sections 5 and 6.f.).

 

d. Status of Child Labor Practices and Minimum Age for Employment

 

According to the Constitution, the State prohibits work by children under the age of 16 years. There is no prohibition on forced labor by children, and school children are assigned to factories or farms for short periods to help meet production goals (see Section 6.c.).

 

There are reports of trafficking in young girls among citizens crossing into China, some to become brides and others forced to work in the sex industry (see Sections 5, 6.c., and 6.f.).

 

e. Acceptable Conditions of Work

 

No data is available on the minimum wage in state-owned industries. Until the recent food crisis, wages and rations appeared to be adequate to support workers and their families at a subsistence level. Wages are not the primary form of compensation since the State provides all educational and medical needs free of charge, while only token rent is charged. The minimum wage for workers in the FEZ is approximately $80 per month; in foreign-owned and joint venture enterprises outside the FEZ the minimum wage is reportedly close to $110 per month. It is not known what proportion of the foreign-paid wages go to the worker and what proportion remains with the State. KEDO, the international organization charged with implementation of a light-water reactor and other projects, has concluded a protocol and a related memorandum of understanding concerning wages and other working conditions for citizens who are to work on KEDO projects. Unskilled laborers receive about $110 per month while skilled laborers are paid slightly more depending on the nature of the work performed (see Section 6.b.).

 

The Constitution states that all working-age citizens must work and "strictly observe labor discipline and working hours." The Penal Code states that anyone who hampers the nation's industry, commerce, or transportation by intentionally failing to carry out a specific assignment "while pretending to be functioning normally" is subject to the death penalty; it also states that anyone who "shoddily carries out" an assigned duty is subject to no less than 5 years' imprisonment (see Section 6.c.).

 

Even persistent tardiness may be defined as "anti-Socialist wrecking" under these articles, although as a result of food shortages absenteeism reportedly has become widespread as more time must be spent finding food. A government official described the labor force to an audience of foreign business executives by noting that "there are no riots, no strikes, and no differences of opinion" with management.

 

In 1994 the authorities reportedly adopted new labor regulations for enterprises involving foreign investments. The regulations on labor contracts set out provisions on the employment and dismissal of workers, technical training, workhours, rest periods, remuneration, labor protection, social security, fines for violations of regulations, and settlement of disputes.

 

The Constitution stipulates an 8-hour workday; however, several sources report that most laborers work from 12 to 16 hours daily when factories are operating. Some of this additional time may include mandatory study of the writings of Kim Il Sung and Kim Jong Il. The Constitution provides all citizens with a "right to rest," including paid leave, holidays, and access to sanitariums and rest homes funded at public expense. Many worksites are hazardous, and the rate of industrial accidents is high. It is believed that workers do not have the right to remove themselves from hazardous working conditions without jeopardizing their employment.

 

f. Trafficking in Persons

 

There are no known laws specifically addressing the problem of trafficking in persons. There have been reports of trafficking in women and young girls among citizens crossing the border into China. Some were sold by their families as wives to men in China. A network of smugglers reportedly facilitates this trafficking. Many such women, unable to speak Chinese, are held as virtual prisoners. Many end up working as prostitutes (see Sections 5 and 6.c.).

 

DEMOCRATIC PEOPLE'S REPUBLIC OF KOREA

 

*The United States does not have diplomatic relations with the Democratic People's Republic of Korea. North Korea does not allow representatives of foreign governments, journalists, or other invited guests the freedom of movement that would enable them to assess fully human rights conditions there. This report is based on information obtained over more than a decade, updated where possible by information drawn from recent interviews, reports, and other documentation. While limited in detail, this information is nonetheless indicative of the human rights situation in North Korea today.

 

NORTH KOREA - STANDARD WORKWEEK

The Constitution stipulates an 8-hour workday; however, several sources report that most laborers work from 12 to 16 hours daily when factories are operating. Some of this additional time may include mandatory study of the writings of Kim Il Sung and Kim Jong Il.

 

(Section 6.e. Acceptable Conditions of Work, North Korea – Report of Human Rights Practices, 2001, U.S. Department of State.)