Hyundai Steel Faces Continued Administrative Lawsuits and Illegal Protests... Concerns Over "Supra-Legal Ruling" by Central Labor Relations Commission

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[Asia Economy Reporter Oh Hyung-gil] The Central Labor Relations Commission (CLRC) of the Ministry of Employment and Labor has ruled that Hyundai Steel must engage in collective bargaining with subcontracted irregular workers' unions, raising concerns in the industry that strikes or lawsuits by subcontracted unions may increase.

According to the Ministry of Employment and Labor, on the 24th, the CLRC partially accepted the unfair labor practice relief application filed by the Metal Workers' Union Hyundai Steel Irregular Workers Branch.

The CLRC ruled that the refusal by the primary contractor to engage in collective bargaining with the subcontracted union regarding the agenda item of "industrial safety and health" constitutes an unfair labor practice.

Last year, the Hyundai Steel Irregular Workers Branch requested collective bargaining with Hyundai Steel but was rejected. Hyundai Steel refused the negotiations on the grounds that it was not the direct employer.

In response, the branch applied for relief to the Chungnam Regional Labor Relations Commission, but the application was dismissed. At that time, the Chungnam Regional Labor Relations Commission ruled that "since there is no explicit or implicit employment relationship between the primary and subcontracted unions, Hyundai Steel cannot be considered the employer under the Labor Union Act."

However, the CLRC decided that, limited to the field of industrial safety and health, Hyundai Steel must share the obligation to engage in collective bargaining together with its in-house partner companies. Nevertheless, the CLRC judged that Hyundai Steel has no obligation to negotiate on other issues requested by the branch, such as remedying discrimination, resolving illegal dispatch, or converting to subsidiaries.

Regarding this, criticism has emerged that the CLRC's judgment goes against the labor law system. Existing precedents and administrative interpretations hold that a labor contract relationship must exist for collective bargaining to be applicable.

Hyundai Steel stated, "We will review the CLRC decision and respond accordingly." Since the CLRC is an administrative agency and its decision has legal effect, it is reported that Hyundai Steel is also considering filing an administrative lawsuit against this decision.

The business community expressed concern over the CLRC's decision, noting that if the primary contractor directly negotiates with partner company unions, it could lead to controversies over illegal dispatch. Additionally, there is concern that if negotiations break down, irregular workers' unions may legally attempt strikes.

After the CLRC ruled last August that CJ Logistics must respond to the collective bargaining rights requested by the Delivery Workers' Union, the delivery union occupied CJ Logistics headquarters a few months later, citing the need for improved treatment.

A representative from the Korea Employers Federation said, "Due to this ultra-legal ruling that contradicts existing precedents, illegal strikes and lawsuits by subcontracted unions are expected to become frequent. There is particular concern that it may provide justification for illegal acts such as occupying primary contractor workplaces."

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