Even if a Car Factory Stops Due to Dismissed Workers' Sit-in Protest, There Will Be No Way to Prevent It Starting Next Year (Comprehensive)

Deleted Prohibition on Non-Worker Workplace Entry and Occupation in Labor Union Act
Possibility of External Persons Joining Unions... Inevitable Confusion Next Year

[Asia Economy Reporter Kiho Sung] The Korean GM non-regular workers' union lifted its occupation protest at the local office of Hong Young-pyo, a member of the Democratic Party of Korea, which began on the 3rd, on the 10th. Coincidentally, this decision was made the day after the Labor Union Act amendment passed in the National Assembly plenary session. Hong, who was the chairman of the Democratic Party's Korean GM Special Countermeasures Committee during the withdrawal of Korean GM's Gunsan plant in 2018, was involved in negotiations between the Korea Development Bank, GM, and the union. At that time, Hong's local office was also occupied by the union opposing corporate separation.

The non-regular union members who participated in this protest will be able to resume activities as Korean GM union members starting next year. This is because the amended Labor Union Act allows dismissed workers to join unions and engage in union activities. As they lifted the protest, they left a meaningful message saying, "We will fight to the end." The automobile industry, which could not conclude wage and collective bargaining negotiations this year due to the passage of the Labor Union Act, is in a state of panic. An industry insider lamented, "There is no law prohibiting those who occupied a lawmaker's local office from occupying the workplace."

◆ Korean GM Faces the Worst Situation

Korean GM, which suffered a loss of 25,000 vehicles due to a 15-day partial strike during this year's wage and collective bargaining negotiations, has fallen deeper into trouble with the passage of the Labor Union Act. According to the automobile industry, the Ministry of Employment and Labor has ordered direct employment of illegal dispatched workers at Korean GM's Bupyeong and Gunsan plants, totaling 945 people. These non-regular workers filed lawsuits demanding direct employment against Korean GM and won both the first and second trials. Since these non-regular workers can join the company union and occupy the workplace as union members to fight for reinstatement, there is no effective way to stop them.

Originally, the government's draft of the Labor Union Act amendment reflected the economic sector's position by prohibiting entry of non-workers into workplaces and including provisions banning full or partial occupation of workplaces, but the Democratic Party deleted all these provisions during the bill review process.

Korean GM is still in turmoil as this year's tentative labor-management agreement was rejected in a union member vote. Although the labor and management parties have presented a second agreement, its approval is uncertain. A Korean GM official said, "With the passage of the labor law, the scale of labor disputes could expand to an unprecedented level," adding, "It is difficult to prepare countermeasures."

This issue is not limited to Korean GM. According to the Korea Automobile Manufacturers Association on the 11th, losses from domestic automobile strikes from 2008 to 2018 amounted to 7.6 trillion won. This is equivalent to the investment for producing 500,000 hydrogen vehicles by Hyundai Motor and its partners by 2030. The situation this year is worse. Due to the COVID-19 pandemic and severe labor-management conflicts, domestic automobile production is at risk of falling below 3.5 million units for the first time in 16 years. Amid already high-cost and low-efficiency production structures, which put the domestic automobile industry at a disadvantage in global competition, the addition of union risks next year has heightened fears that the industry's decline will be uncontrollable.

◆ External Personnel Joining Unions? ... The Butterfly Effect Caused by Deleting 'Dismissal'

The sense of crisis among finished car manufacturers is greater than ever. The Renault Samsung Motors union is expected to accelerate its affiliation with the Korean Confederation of Trade Unions (KCTU) due to the passage of this bill. This is because KCTU activists now have the possibility to join unions.

During the bill review process, the Democratic Party deleted the proviso clause in Article 2, Paragraph 4, Subparagraph (d) of the Labor Union Act, which stated, "If a dismissed person files an unfair labor practice relief application with the Labor Relations Commission, they shall not be interpreted as a non-worker until the Central Labor Relations Commission's retrial decision is made," to allow dismissed and unemployed persons to join unions. The problem arises from deleting the word 'dismissal.' Previously, the term 'dismissal' limited union membership to those affiliated with or formerly affiliated with the workplace, but its removal leaves room for interpretation that persons not affiliated with the workplace may also join unions. Therefore, even if senior officials of higher-level organizations such as the KCTU join unions and conduct activities within workplaces, there is no proper way to prevent them.

After the 'Ssangyong incident' in 2009, Ssangyong Motor's first union withdrew from the KCTU. However, with the passage of the Labor Union Act, there is concern that highly active and organized KCTU personnel may join company unions and expand their activities.

Lee Jun-hee, head of the Labor Relations Legislation Team at the Korea Employers Federation, pointed out, "One of the problems with this bill is that it created too much room for interpretation," adding, "As a result, situations seeking court rulings will increase, and confusion is inevitable until precedents accumulate."

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