Kia Motors Wins Labor Lawsuit on Ordinary Wages... Will Other Companies Face Similar Lawsuits?

Over 30 Ordinary Wage Lawsuits Pending Before the Supreme Court

[Asia Economy Reporters Kim Hyewon and Lee Gimin] It’s not over even when it seems to be. The Kia Motors case, which attracted attention as an unprecedented large-scale and long-term lawsuit over ordinary wages, has been tentatively concluded as a 'worker victory,' and similar lawsuits demanding unpaid ordinary wages are expected to follow in other companies. Companies that are already engaged in ordinary wage lawsuits or where movements to file lawsuits have been detected are now interpreting the subsequent legal principles following the Kia Motors Supreme Court ruling.

According to the courts and business circles on the 20th, there are currently more than 30 large and small lawsuits pending at the Supreme Court related to ordinary wages. Representative companies include Hyundai Heavy Industries, Hyundai Mipo Dockyard, Hanjin Heavy Industries, Asiana Airlines, Mando, Kumho Tire, and Doosan Motrol. The claim amounts range from several tens of billions to several hundred billion won, so if they lose, the wages to be paid at once are considerable.

In the case of Hyundai Heavy Industries, 10 workers including Jeong Mo first filed a lawsuit in December 2012, and have been engaged in a protracted legal battle for eight years. While the labor union and management each won once in the first and second trials, the application of the 'principle of good faith (Shinui Principle)'?similar to the Kia Motors case?is the biggest issue, and attention is focused on this ruling. If the union wins, the wages Hyundai Heavy Industries must pay are known to be in the 600 billion won range.

An official from a large company currently involved in an ordinary wage lawsuit said, "Ordinary wage lawsuits are so complex and diverse in each company that not all cases can be viewed on the same level, but many cases lose because the Shinui Principle is not recognized like in the Kia Motors case, so concerns are high in each company," adding, "The legal team will carefully review this ruling."

In addition to ongoing ordinary wage lawsuits, the Kia Motors ruling is expected to provide direction to company unions that had been holding off on lawsuits. There is also a possibility that the issue will spread beyond large conglomerates to small and medium-sized enterprises. Like Hyundai Motor Company, there is a high chance that retirees will file class-action lawsuits late, demanding unpaid ordinary wages.

Park Jaegun, head of the Economic Research Department at the Korea Chamber of Commerce and Industry, pointed out, "The courts have been overturning matters that labor and management had agreed upon, and now even the last safeguard of corporate management, the Shinui Principle, is being removed."

Lee Sangho, head of the Employment Policy Team at the Korea Economic Research Institute, said, "Since early this year, companies have faced emergency management situations requiring the application of the Shinui Principle more than ever, such as production stoppages due to the spread of COVID-19. While respecting the Supreme Court ruling, excluding the application of the Shinui Principle under these exceptional management conditions is cornering companies."

This content was produced with the assistance of AI translation services.