'Refusal to Trade' Ulsan Construction Equipment Branch of Construction Union Sanctioned by Fair Trade Commission

by Jo Youjin

Published 15 Mar.2024 07:04(KST)

Construction Companies Forced to Stop Transactions with Non-Union Business Operators

[Image source=Yonhap News]

On the 14th, the Korea Fair Trade Commission announced that it will issue a corrective order and impose a fine of 43 million won on the Ulsan Construction Equipment Branch of the Korean Confederation of Trade Unions (KCTU) National Construction Workers' Union for forcing construction companies not to deal with non-union member businesses.

It was investigated that from 2020 to 2022, the branch set appropriate rental fees and payment deadlines for construction equipment rented by its affiliated businesses and notified union members and local construction companies. The Fair Trade Commission judged this as an act restricting competition among businesses.

The branch also forced construction companies not to transact with non-union member businesses under the pretext of securing work for union members. Claiming to distribute work among union members, it ordered certain businesses to stop renting construction equipment and demanded the division of dispatch tickets to the branch.

As of 2021, businesses affiliated with the Ulsan Construction Equipment Branch own and rent out 1,982 units, accounting for about 37% of the commercial construction equipment in the Ulsan area.

A Fair Trade Commission official stated, "This is a case of detecting and sanctioning anti-competitive behavior by a construction equipment business group in the Ulsan region with considerable influence," adding, "It is expected to contribute to preventing construction delays and cost increases."