"Central Labor Relations Commission Rules CJ Logistics Committed Unfair Labor Practices... Concerns Over Negative Impact on Labor-Management Relations"

[Asia Economy Reporter Su-yeon Woo] The Federation of Korean Industries (FKI) expressed concerns on the 2nd about the negative impact on future domestic labor-management relations following the Central Labor Relations Commission's ruling that CJ Logistics' subcontractor's refusal to engage in collective bargaining constitutes an unfair labor practice.

On this day, the FKI stated, "We cannot help but worry about the adverse effects this Central Labor Relations Commission decision will have on labor-management relations," adding, "This ruling contradicts recent precedents where courts and the Central Labor Relations Commission denied the principal company's status as an employer, and it nullifies contracts between agencies and delivery workers while undermining the independence of agencies."

They further added, "Recognizing the principal company's employer status could restrict business models that utilize external personnel, potentially leading to the contraction of subcontractors and deterioration of the related industrial ecosystem."

The FKI expressed concerns that, amid strengthened union powers following last year's amendment to the Labor Union Act, this Central Labor Relations Commission ruling could deepen the power imbalance favoring unions. Choo Kwang-ho, Director of Economic Policy at the Korea Economic Research Institute under the FKI, said, "We hope that future trials will make reasonable judgments considering the impact on labor-management relations."

Previously, in March of last year, the Delivery Workers' Union requested collective bargaining with CJ Logistics, the principal company, but CJ Logistics refused, citing the absence of a direct contractual relationship. In response, the Delivery Workers' Union filed a relief application with the Seoul Regional Labor Relations Commission, claiming CJ Logistics' refusal to negotiate constituted an 'unfair labor practice.'

In November of last year, the Seoul Regional Labor Relations Commission ruled in favor of CJ Logistics; however, the Delivery Workers' Union appealed to the Central Labor Relations Commission, which on this day ruled that CJ Logistics' refusal to engage in collective bargaining was an 'unfair labor practice.'

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