"Rush to Join Union" Democratic Labor Union Smiles at POSCO Direct Employment

[Asia Economy Reporter Gong Byung-sun] Following the Supreme Court ruling, there are signs that collective lawsuits by POSCO in-house subcontracted workers will expand.

On the 29th, the Metal Workers' Union branch of the Korean Confederation of Trade Unions (KCTU) organized the union membership of about 18,000 in-house subcontracted workers from approximately 100 subcontracting companies at the Pohang and Gwangyang steelworks, and decided to encourage participation in additional lawsuits. The day before, the Supreme Court ruling subjects included 15 people from the first collective lawsuit and 44 people from the second collective lawsuit. All are members of the Metal Workers' Union POSCO In-house Subcontracted Workers Branch and have been performing tasks such as transporting coils and rolls using cranes and maintenance support at POSCO. The first collective lawsuit was filed on May 31, 2011 (won at Gwangju High Court on August 18, 2016), and the second collective lawsuit was filed on October 27, 2016 (won at Gwangju High Court on February 3, 2021). Currently, a total of 808 in-house subcontracted workers from the Gwangyang and Pohang steelworks are engaged in collective lawsuits against POSCO, up to the seventh lawsuit. The third (8 people) and fourth collective lawsuits (219 people) were also ruled in favor of POSCO in-house subcontracted workers by the Gwangju High Court on February 9, 2022.

Jeong Ki-ho, a lawyer at the KCTU Legal Office, said at a press conference in front of the Supreme Court on the 28th, "This is the first case recognizing the dispatch of workers in steelmaking processes, and the ruling that the steel manufacturing process at integrated steelworks is essentially worker dispatch where subcontracting relationships are impossible," adding, "It is a meaningful ruling that will serve as a benchmark for subsequent lawsuits, including those against Hyundai Steel."

Economic organizations expressed regret over the court's judgment that applied the Act on the Protection of Dispatched Workers to some subcontracted production processes and deemed them illegal dispatch. The Korea Employers Federation, representing employers, stated, "The court regarded the Manufacturing Execution System (MES) as a binding work instruction, but MES is a system that shares work content and information through computerization to improve work efficiency and enhance safety. In countries like Germany and Japan, MES is not considered to be used in subcontracting relationships," and warned, "If similar rulings continue, it will negatively affect not only the global competitiveness of our companies but also jobs."

The Federation of Korean Industries said, "Unlike the US and the UK, manufacturing dispatch is prohibited in Korea, and the dispatch period is limited to two years, so there are cases where in-house subcontracted workers are utilized. This ruling does not sufficiently consider the realities of industrial sites," and added, "We hope that future similar cases will reflect the voices of the industrial field." POSCO stated, "We respect the court's ruling and will promptly review the judgment and take follow-up measures in accordance with its intent."

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