KCCI: "Supreme Court Ruling on POSCO In-House Subcontracting Negatively Impacts Our Companies' Competitiveness and Jobs"

"Very Regrettable Position"

[Asia Economy Reporter Kiho Sung] The Korea Employers Federation (KEF) expressed concerns regarding the Supreme Court's recognition of in-house subcontracting at POSCO, stating that "it will have a negative impact not only on the global competitiveness of our companies but also on jobs."

On the 28th, KEF released a statement saying, "The business community deeply regrets the court's judgment that applied the 'Act on the Protection of Dispatched Workers, etc.' to certain subcontracted production processes and deemed them illegal dispatch."

On the same day, the Supreme Court upheld the lower court's ruling in favor of workers from partner companies responsible for crane operation tasks, who had filed a lawsuit against POSCO to confirm their employment status.

KEF stated, "Subcontracting is a universal production method widely used not only in steel-producing competitor countries such as Germany and Japan but also globally to improve production efficiency," adding, "In particular, subcontracting can be applied not only to the complete production of a specific product but also to parts of the production process."

They further pointed out, "The lower court judged that the tasks of POSCO and its partner companies were clearly distinguished and that the partner companies independently exercised personnel and labor authority, such as worker selection," and criticized, "However, based on external circumstances such as the continuity between the primary contractor's production process and the crane operation tasks performed by the partner companies, the court concluded that a worker dispatch relationship was established between the partner company workers and POSCO."

KEF also noted, "The court particularly regarded the MES as a binding work directive," but argued, "MES is a system that enhances work efficiency and safety by sharing work content and information through computerized means. Competitor countries like Germany and Japan have used MES in subcontracting relationships without considering it illegal dispatch."

KEF concluded, "This ruling did not sufficiently consider the nature of subcontracting contracts, the characteristics of the work, changes in the industrial ecosystem, or the realities of our labor market," warning, "If similar rulings continue, it will negatively affect not only the global competitiveness of our companies but also jobs."

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