Transformation of Work in Postgrowth Society: Focusing on the Case of Dual Transformation in the Korean Auto Parts Suppliers

As in other countries, the dual transformation of the manufacturing industry in Korea was promoted in earnest under the name of the 'Korean New Deal' after the outbreak of COVID-19. In the case of Korea, digital transformation during this period progressed rapidly with a focus on automation. The automation rate and labor replacement rate by machines in Korea's manufacturing industry reached the world's highest level during this period. That leads in a low-growth phase is ultimately to a very profound impact on employment relations.

This research deals with the current situation and innovative strategies of auto parts suppliers and labor’s counter strategy in the process of dual transformation in Korea. As demand and production of electric vehicles increase at a global level, Internal combustion engine parts manufacturers are increasingly aware of the crisis. Digital transformation offers parts manufacturers opportunities to increase productivity and reduce costs. At the same time, with the spread of platform-based production, due to digital transformation, exclusive transaction practices are gradually reduced, and the stable transaction relationship between main contractors and subcontractors may become unstable. Against this background this study analyzed the counterstrategies between local parts makers and trade unions in the process of digital transformation through a survey of auto parts makers in Daegu(which is Korea’s leading auto parts production area).

The counter strategies of both sides were found to affect work organization and skill level in different ways during the digital transformation process. Furthermore, the union's response strategy was very passive. The union focused on protecting organized workers and wages while allowing contingent employment of workers.

To solve this problem, we emphasize the need for a citizen-labor solidarity strategy that strengthens the resilience of local communities and pursues social-ecological transformation instead of the existing technology-driven, cost-saving dual transformation.