"Turned into a Villainous Business Owner in an Instant" ... Busan Taxi Transportation Business Association Issues Statement Condemning Inconsistent Rulings

Jang Seong-ho, Chairman of the Busan Taxi Transportation Business Association, is delivering a statement.

[Asia Economy Yeongnam Reporting Headquarters Reporter Hwang Du-yeol] The Busan Taxi Transportation Business Association has opposed the Supreme Court's ruling that the reduction of prescribed working hours in the taxi industry is illegal, urging a judgment that reflects the realities of the industry.

At around 10:30 a.m. on the 11th, representatives affiliated with the Busan Taxi Transportation Business Association held a one-person protest in front of the Busan High Court and issued a statement.

The representatives pointed out, "The ruling by the Supreme Court's full bench is essentially a death sentence for the nationwide corporate taxi industry," adding, "A large-scale unemployment crisis among taxi drivers is occurring, and the taxi industry used by ordinary citizens is collapsing."

On April 19, 2019, the Supreme Court ruled that a taxi company in Gyeonggi Province had cleverly circumvented the Minimum Wage Act by reducing prescribed working hours, declaring the reduction invalid.

Since then, many taxi industry workers have filed lawsuits against their companies, claiming that the reduction of prescribed working hours was an attempt to secretly evade the Minimum Wage Act and is therefore invalid, demanding unpaid wages.

In February 2022, taxi drivers in Busan also filed lawsuits against their companies, claiming the reduction of prescribed working hours was invalid and demanding wages. The Busan High Court ruled in favor of the taxi drivers, ordering the taxi company to pay 56.37 million won out of the 154.56 million won claimed.

Representatives of the Busan Taxi Transportation Business Association stated, "We have legitimately concluded wage agreements and collective agreements with labor unions that have bargaining and contract rights under the Labor Union Act," and “These legitimately concluded wage agreements and collective agreements have been invalidated, turning us overnight into malicious employers who have withheld tens of billions of won in wages.”

Since the Supreme Court ruling, there have been 391 lawsuits in the Busan taxi industry, involving 3,390 taxi drivers, with claims amounting to approximately 37 billion won.

Representatives of Busan taxi companies argued, "The reduction of prescribed working hours agreed upon by labor and management in the Seoul area has been recognized, so why is it not recognized in Busan? It makes no sense for the law to differ by region," and "The reduction of prescribed working hours in Busan was also a legitimate agreement reached between labor and management."

The representatives added, "Busan courts should clearly assess the facts and properly reflect the situation and realities faced by the taxi industry to deliver a reasonable judgment."

Due to the nature of the taxi industry’s work style, working hours, breaks, and waiting times are not clearly distinguished, so labor and management agree to apply prescribed working hours as the basis for wage payment according to the Labor Standards Act.

In October 2021, the Seoul Western District Court dismissed claims for unpaid wages, ruling that the agreement to reduce prescribed working hours, made by labor and management considering the nature of taxi work outside the workplace, does not violate the Minimum Wage Act.

Representatives of the Busan Taxi Transportation Business Association are holding a banner and announcing the association's statement.

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