Archive for the ‘Labor conditions/wages’ Category

Regime takes two thirds of worker’s salaries for ‘loyalty funds’

Wednesday, August 8th, 2018

Benjamin Katzeff Silberstein

Daily NK:

As the North Korean authorities shift the financial burden of preparing for the anniversary of North Korea’s establishment on September 9 and the development of the Wonsan-Kalma Marine Tourist Zone, residents are increasingly voicing their complaints over the inherent unfairness of the situation.

“Employees at a joint Sino-North Korean enterprise [name redacted for the safety of the source] located in Rason usually receive 300 yuan (around 50,000 South Korean won) per month, but this month they were only paid 100 yuan,” said a source in North Hamgyong Province on August 6. “Without any prior notice, 200 yuan was taken out of their salaries to be used as funding for regime projects.”

The North Korean authorities have placed great importance on the development of the Wonsan area along with events surrounding the 70th anniversary of the establishment of the nation on September 9. State officials are forcibly taking money from the pockets of ordinary citizens to pay for these projects, according to the source.

“In the past, the state took some money from people’s salaries but never a full two-thirds,” he said. “It’s difficult enough surviving on 200 yuan, so people are very worried about how to survive off a measly 100 yuan.”

One family working at the enterprise typically earns 400 yuan a month but received just 200 yuan this month, he said, explaining that “it’s not enough to even get them through the month […] They have no money saved up and are worried that more money will be taken out of their salaries next month as well.”

Overseas workers are also being forced to contribute part of their salaries to what is referred to as a “loyalty fund.”

“There is money that we have traditionally given to the state each month, but now they have told us we need to give them 2,000 yuan more per month […] Business is difficult these days, which forces us to take money out of our employees’ salaries to pay state officials,” the manager of a North Korean restaurant in China’s Liaoning Province said.

The manager also noted that the authorities were asking for more money to be paid at ever more frequent intervals of time. “Our employees are usually forced to give money [to the loyalty fund] each month, but our employees are up in arms about the amount taken out by the state this month,” the manager said, expressing concern that feelings of discontent among their employees could lead to them running away or even defecting to South Korea.

Full article and source:
Regime takes up to two-thirds of salaries from workers for ‘loyalty funds’
Ha Yoon-ah
Daily NK
2018-08-08

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Thousands of North Korean workers enter Russia despite UN ban

Thursday, August 2nd, 2018

Benjamin Katzeff Silberstein

Reports Wall Street Journal:

Russia is letting thousands of new North Korean laborers enter the country and issuing fresh work permits—actions U.S. officials say potentially violate United Nations sanctions aimed at cutting cash flows to Pyongyang and pressing it to give up nuclear weapons.

The U.N. Security Council in September barred governments from issuing new work permits to North Koreans, though some existing labor contracts were allowed to continue.

Since the ban, more than 10,000 new North Korean workers have registered in Russia, according to Russian Interior Ministry records reviewed by The Wall Street Journal. Meanwhile, at least 700 new work permits have been issued to North Koreans this year, according to Labor Ministry records.

[…]

North Korean laborers have helped feed the construction boom in St. Petersburg, according to local businessmen.

“They work till they drop,” said a contractor who hires North Koreans across the city. Workers arrive at construction sites at 7 a.m. and work until 10 p.m. or even midnight, taking just two half-hour breaks for meals of rice and dried fish, he said.

Local developers say they pay companies that hire out North Korean workers—firms they say often represent North Korean institutions such as the military or state conglomerates—about 100,000 rubles ($1,600) a month per worker. In government filings and job advertisements, such companies list monthly worker salaries of 16,000 to 20,000 rubles.

That 80% difference is in line with U.S. assessments that North Korea’s government takes the bulk of earnings.

U.N. sanctions mean these laborers should be gone by September, a year after they went into effect, because the workers are required to leave once their permits expire, usually within a year. Even workers with multiyear permits must be out by the end of 2019 under the sanctions.

Yet many firms contracting out laborers—Russian companies owned and run by North Koreans, according to corporate documents and researchers—are investing in new offices, applying for new work permits and negotiating new projects.

“The Kim regime continues to dispatch citizens abroad,” said C4ADS, a nonprofit that advises the U.S. government on security risks, in a report released Thursday. “In doing so, it continues to flout international sanctions to generate foreign currency.”

About 100,000 or more North Korean laborers have been working overseas in recent years, the U.S. State Department said. Pyongyang’s labor exports earned as much as $2 billion a year for the Kim regime, analysts say.

According to Russian government data, around 24,000 North Koreans were officially working in the country at the end of last year.

Full article and source:
Thousands of North Korean Workers Enter Russia Despite U.N. Ban
Ian Talley and Anatoly Kurmanev
Wall Street Journal
2018-08-02

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94,000 North Koreans working in China, Hong Kong news outlet says

Monday, June 12th, 2017

By Benjamin Katzeff Silberstein

Reports KBS:

Quoting data by the China National Tourism Administration, the broadcaster said that the number of North Korean workers in China increased from about 50-thousand in 2006, when the North conducted its first nuclear test, to 94-thousand-200 in 2015, earning the regime billions of yuan, or hundreds of billions of won, a year.

Full article:
Hong Kong Paper: 94,000 N. Koreans Working in China
Korean Broadcasting Service
2017-06-12

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No more North Korean labor in Bulgaria

Monday, May 29th, 2017

Benjamin Katzeff Silberstein

Reports Yonhap:

Bulgaria said Monday that it has suspended imports of workers from North Korea amid criticism that Pyongyang is extorting money earned by their people overseas.

The action was taken along with the Czech Republic and Romania, the Bulgarian Embassy to South Korea said in a press release.

“Bulgaria, the Czech Republic and Romania set a precedent by ceasing their labor imports after realizing the conditions of North Korean overseas laborers,” it said.

“The suspension of receiving North Korean laborers by these three East European countries is an example where states have actively taken measures against the extortions of the laborers’ remuneration,” it added.

Full article:
Bulgaria suspends labor imports from N.K.
Yonhap News
2017-05-29

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Official salaries in the DPRK

Thursday, December 29th, 2016

Thae Yong-ho, the former North Korean ambassador to London, gave a press conference in which he offered some interesting information on official salaries.

According to Yonhap:

North Korean diplomats and their families who are dispatched to foreign countries live together as one group. It’s like a microcosm of North Korean society, he said. An ambassador takes home an average monthly salary of about US$900-1,100 although the amount varies depending on the country. A minister gets about $700-800.

“Many people question how one could live in London with a salary of less than $1,000 … (Because of that) All the North Korean diplomats based overseas make extra income using all means possible,” according to Thae.

Diplomats are also required to earn foreign currency and send it to the regime, a compulsory task designed to make up for North Korea’s dwindling foreign exchange income due to sanctions, which is crucial to its development of nuclear weapons.

“Diplomats affiliated with the ministries of foreign trade or finance are given specific tasks to earn foreign currency, failure of which leads to interrogation by the head office,” Thae said.

Those from the Ministry of Foreign Affairs are not given a specific amount of money to earn, but they are subject to monthly performance reviews, he said. “Many people fail to live up to the task and go under tremendous psychological pressure and suffering.”

North Korean diplomats in overseas countries are also subject to close surveillance by the state. The ambassador or second-highest ranking official at a foreign mission is often designated the chief surveillance official and required to report on his embassy staff.

Wary of potential defection by diplomats, the regime keeps one member of the overseas-based diplomat’s family in North Korea as hostage, he noted.

You can read the full story here:
High-profile defector sheds light on everyday life of N. Korean diplomats
Yonhap
2016-12-29

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Chinese companies requesting more North Korea guest workers

Friday, February 5th, 2016

By Benjamin Katzeff Silberstein 

Demand is increasing for North Korean guest workers among Chinese companies in the Sino-Korean border region, reports Joongang Ilbo. The Chinese labor force increasingly migrates to other regions for better wages and working conditions, and one company looking to recruit North Korean employees says one third of their Chinese workers left last year to find better-paying jobs elsewhere:

Companies in three northeastern Chinese provinces are vying to recruit as many North Korean workers as they can to capitalize on cheap labor costs – moves that run counter to the international community’s efforts to impose further economic sanctions on North Korea following the country’s fourth nuclear test early this month.

Chunwoo Textile, a company based in Dandong, Liaoning Province, lost 100 of some 300 workers last year to factories operating in other provinces because wages were much higher there.

China’s northernmost provinces of Liaoning, Jilin and Heilongjiang reputedly offer much cheaper wages for labor-intensive workers compared to other regions.

In Dandong, the average monthly wage stands at 2,843 Chinese yuan ($431.90), much less than the 5,313 yuan offered in Guangdong Province.

In 2012, North Korea and China agreed that 40,000 North Korean workers would come to China on industrial training visas.

Full article:
China seeks more workers from north
Ko Soo-suk and Kang Jin-kyu
Joongang Ilbo
01-27-2016

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Labour regulations in EDZ modified

Wednesday, February 3rd, 2016

According to the Pyongyang Times (2016-2-3):

The DPRK has modified its labour regulations for the economic development zones, which were worked out according to a decision of the Presidium of the Supreme People’s Assembly on December 12 2013.

According to them, a foreign investment business is encouraged to employ local manpower as much as possible but it may hire foreign management staff, specialists and technicians.

The fixed monthly minimum wage is set by the central agency for the special economic zones guidance in consultation with relevant provincial-level people’s committees and EDZ management agencies.

An employee is supposed to work 8 hours a day or 48 hours a week on average.

A business shall make sure that employees take rests on local holidays and Sundays.

The forms of payment to the employees involve wage, incentives and bonuses.

According to the quality and amount of work, payment should be done correctly and employees who have carried out the same amount of work are to be paid evenly on an equal footing irrespective of gender and age.

The monthly wage is up to a business. In this case, it cannot be set lower than the fixed minimum wage.

While making preparations to start operation, a business may set the salary for employees, apprentices and unskilled hands within the scope of over 70 per cent of the fixed minimum wage.

A business shall pay for its employees’ regular and supplementary leaves in accordance with the number of their days off.

Female staff on maternity leave shall be paid over 60 per cent of the leave allowances.

If a business works an employee while on leave, it shall pay him or her the equivalent of 100 per cent of the wage per day or hour, as well as their leave allowances.

A business shall give supplementary living allowances that account for over 60 per cent of their wages per day or hour to those who are under training or out of work due to the management.

When it works an employee late at night or overtime, the business shall pay him or her 150 per cent of the wage per day or hour.

If the work is done overtime late at night, 200 per cent of the wage per day or hour shall be given to the worker.

If a business works an employee on holidays or Sundays without compensatory days off, it should pay 200 per cent of the wage per day or hour.

The wage is given in cash, and the bonuses and incentives may be paid in the form of notes or goods.

The DPRK citizens and their families in the EDZ are to benefit from the social and cultural policies of the government, namely free education and medical service, social insurance and social security.

If any breach causes damages to the lives, health and properties of a business or employee, it shall be restored to their original state or compensated duly for the damages.

By Cha Myong Chol PT

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North Korean workers ordered home after Moranbong debacle

Friday, December 18th, 2015

By Benjamin Katzeff Silberstein

According to Daily NK, North Korean authorities have ordered workers in China home following the cancelled Moranbong Band concert:

Just five days after North Korea canceled Moranbong Band’s Chinese tour and ordered an immediate return of the band back home, the authorities issued an order to all sojourning employees in China, most of whom are employed at trading companies, to report to Pyongyang.

On the 16th, our Daily NK reporter spoke with a source residing in Pyongyang, who informed us that no concrete reason had been given along with the order. And so on the 16th, agricultural workers, forestry workers, traders, and workers affiliated with Mansudae Art Studio boarded a train to return back to North Korea.

This was corroborated by an additional source in the capital.

Our source expressed concern over the drastic measure, wondering if the issue of the Moranbong Band’s canceled tour might be exploding into a bigger issue. “When you call back scores of workers abroad, that’s a pretty big deal,” she pointed out.

One has to wonder whether all workers in China could really have been recalled home, given their substantial numbers. Just to give a sense of the size of this labor force, in 2013 the number of North Korean workers that entered China was around 93,000, according to South Korean statistics. Most likely only a small share was stationed permanently in the country, but even so, recalling each and every one on such short notice sounds like a logistically implausible operation.

Read the full article:
NK orders workers in China back home
Kang Mi Jin
Daily NK
2015-12-18

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DPRK doctors earn hard currency abroad

Wednesday, November 25th, 2015

According to the Joong Ang Ilbo:

North Korea is making $15 million a year from deploying 1,250 doctors and nurses in 26 nations where they perform illegal medical practices such as abortions and injections of illegal substance, South Korea’s intelligence agency reported Tuesday.

Some 1,170 North Korean medical staff are working in Africa, according to lawmakers Lee Cheol-woo of the ruling Saenuri Party and Shin Kyoung-min of the opposition New Politics Alliance for Democracy. They were briefed by the National Intelligence Service (NIS) on Tuesday as members of a parliamentary intelligence committee. The NIS reported that North Korean doctors are engaged in illegal medical practices with a focus on earning foreign exchange. They also sell dubious medical products.

The NIS said the North was accused of bribing local officials to keep their illegal activities going. Citing a report by a local newspaper in Tanzania published on Feb. 21, the NIS said North Korea was caught trading sexual enhancer products, or aphrodisiacs, that contained mercury 185 times higher than international standards.

Dispatching medical operatives overseas appears to be part of Pyongyang’s long-running effort to earn foreign currency. The intelligence agency also reported that North Korea, which it said was accelerating its exports of labor, is earning $230 million a year on average from 58,000 workers in 50 different countries overseas. Pyongyang is also reportedly planning to export 3,000 new workers to labor in the fields of construction, medical and IT industries.

North Koreans sent abroad also work in logging, mining, construction and agriculture.

The two lawmakers also quotes the NIS as reporting a sense of disappointment among North Koreans after Pyongyang failed to deliver on its promise to improve people’s living conditions to mark the anniversary of the 70th foundation of the Workers’ Party. The Communist state is also suffering from an acute shortage of electricity, according to a NIS report.

On Choe Ryong-hae, secretary of the Workers’ Party who has vanished from the public view for nearly a month, was sent to a rural agricultural cooperative for “revolutionary re-education,” the NIS reported, citing a classified source of information.

The agency said Choe was removed from power partly to take responsibility for a partial collapse of a power plant in Yanggang Province.

Read the full story here:
Pyongyang’s flying doctors pull in $15M a year: NIS
Joong Ang Ilbo
Kang Jin-Kyu
2015-11-25

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New taxes to kick in for KIC firms

Wednesday, November 4th, 2015

According to Yonhap:

South Korean firms operating in North Korea are required to pay a land use fee starting this year, officials here said Wednesday, after a decade of exemption.

The relevant authorities of the two Koreas will soon begin talks on how much more the 120 South Korean companies in the Kaesong Industrial Complex should pay, they added.

Launching the facilities in 2004, the North agreed to exempt the South from a land use fee for a decade. The measure expires this year.

“It’s a kind of tax to be paid once a year,” a Unification Ministry official said. “Thus, the North’s Central Special Development Guidance Bureau and the South’s Kaesong Industrial District Management Committee should begin consultations before long.”

The two sides recently ended months of negotiations on the level of wages for around 53,000 North Korean workers in the Kaesong zone near the inter-Korean border.

They agreed on a 5-percent increase in minimum wages from US$70.35 a month.

Read the dull story here:
S. Korea to pay ‘tax’ for Kaesong complex
Yonhap
2015-11-4

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