Hyundai Heavy Union Wins 630 Billion KRW Ordinary Wage Lawsuit (Update)

[Asia Economy Reporter Baek Kyunghwan] Hyundai Heavy Industries workers won a lawsuit worth 630 billion KRW against the company, demanding that bonuses be recognized as ordinary wages. The court ruled that if there is a possibility of overcoming managerial difficulties, the principle of good faith should not be used to easily reject workers' claims for additional statutory wages.

On the 16th, the Supreme Court's 3rd Division (Presiding Justice Kim Jae-hyung) overturned and remanded the lower court's ruling, which had dismissed the wage claim lawsuit filed by 10 Hyundai Heavy Industries workers against the company.

In December 2012, 10 Hyundai Heavy Industries workers filed a lawsuit against the company, requesting that the entire 800% bonus?comprising a 700% regular bonus paid every even month and a 100% bonus for Lunar New Year and Chuseok?be included in ordinary wages, and that this be applied retroactively for the previous three years.

The rulings in the first and second trials differed. In February 2015, the first trial recognized the entire 800% bonus as ordinary wages. While applying the minimum standard under the Labor Standards Act for retroactive wage payments, the court accepted the three-year retroactive claim.

The second trial court judged that if Hyundai Heavy Industries accepted the workers' demands, the company's survival could be threatened. Therefore, it ruled that the 100% bonus paid during Lunar New Year and Chuseok among the 800% bonuses did not have fixedness and could not be included in ordinary wages.

The Supreme Court's judgment was different. The court stated, "If there is a possibility of overcoming managerial difficulties, the principle of good faith should not be used to easily reject workers' claims for additional statutory wages."

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