• Journal of Labour Economics
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• v.27 no.1
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• pp.27-53
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• 2004

This paper analyzes the two cases of labor disputes (Hyundai Motor in 1998 and Power Generation Companies in 2002) in the period of restructuring, by applying the behavioral theory of labor negotiations as a comparative framework. The paper compares th backgrounds of the labor disputes, core issues, bargaining processes, and evolutionary patterns and consequences of the labor disputes at the two cases. The common features, found in the two dispute cases, are strong mistrust and exclusive bargaining attitude between labor unions and management, little feasibility of contract zone in bargaining proposals by the two parties, heteronomous dispute resolution by the intervention of the government, and the lack of learning effect gained from the experience of labor disputes. This comparative case study identifies that the confrontational labor-management relations at the firm level is re-produced by a regressive process of the following circulation: labor-management distrust $\rightarrow$ interest conflict in bargaining demand $\rightarrow$ exclusive bargaining attitude $\rightarrow$ the experience of antagonistic dispute $\rightarrow$ deepened distrust. In conclusion, four parties-labor unions, management, the government, and public press - are required to make much effort to replace the vicious circle of labor-management confrontation by a virtueous cycle of labor-management cooperation.