[2021 National Audit] IBK Call Center Contract Includes 'Termination Clause in Case of Labor Disputes'

Assemblyman Bae Jin-kyo "Investigation Needed on Whether There Was Systematic Suppression of Call Center Union Formation"

[Asia Economy Reporter Sunmi Park] It has been confirmed that IBK Industrial Bank of Korea not only denies the constitutionally guaranteed right of workers to organize but also included content constituting unfair labor practices in the outsourcing contracts with private call center subcontractors.

According to materials submitted by IBK Industrial Bank of Korea to Bae Jin-gyo, a member of the National Assembly's Political Affairs Committee from the Justice Party, since January 2020, the outsourcing contracts with six private call center subcontractors have stipulated that if labor disputes at the subcontracted companies occur within the bank’s domain or if such disputes disrupt the entrusted work, the contract may be terminated.

Looking specifically at the outsourcing contracts, IBK Industrial Bank of Korea included content denying workers' right to organize in Article 22 (Compensation for Damages) and Article 25 (Termination of Contract). Article 22, Paragraph 3 states, “If a labor dispute occurs at the company, the company shall resolve it at its own responsibility and take prior measures to ensure that no damage occurs to the bank, such as preventing disruption to the entrusted work.” Article 22, Paragraph 4 reflects that “If the company’s employees cause damage to the bank due to labor disputes, the company shall compensate for it.”

Furthermore, Article 25, Paragraph 1, Item 8 includes the clause, “If the company’s labor dispute occurs within the bank’s domain or causes disruption to the entrusted work,” treating the constitutionally guaranteed right of workers to collective action as grounds for contract termination.

By including such provisions in the call center outsourcing contracts, IBK Industrial Bank of Korea instructed subcontracted call center companies to preemptively block the establishment of labor unions through contracts, which constitutes unfair labor practices violating labor laws. Additionally, considering the constitutionally guaranteed right to collective action as grounds for contract termination also constitutes an unfair contract.

The “Practical Manual for Working Conditions of Private Outsourced Workers” published by the Ministry of Employment and Labor in May states, “Entrusting institutions should be especially careful not to include clauses restricting the three labor rights of the entrusted institution’s workers when drafting outsourcing contracts.” The manual specifies that “Including contract termination clauses for cases where the entrusted institution’s workers cause disruption to work due to labor disputes or collective actions, or when strikes or slowdowns make work performance difficult, may restrict the three labor rights of the entrusted institution’s workers.”

In July, the National Office and Financial Services Labor Union raised concerns about the inclusion of “prevention of collective action by counselors” in public institution call center bid proposals and contracts. On August 27, Assemblyman Bae requested IBK Industrial Bank of Korea, which had not submitted related materials at the time, to provide the outsourcing contracts between the bank and the subcontracted call centers. On August 31, the day the submission was requested, IBK Industrial Bank of Korea re-contracted with all six companies to delete the relevant clauses.

Assemblyman Bae stated, “Since it appears that IBK Industrial Bank of Korea has reflected illegal content in call center outsourcing contracts from the past, labor supervision and investigation of the contract contents are necessary.”

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