Court Recognizes Samsung Fire & Marine Insurance Staff Council Union's Right to Collective Bargaining

[Asia Economy Reporter Kim Hyung-min] The court overturned the first-instance ruling in the second trial of the lawsuit between the Samsung Fire & Marine Insurance union and the Samsung Fire & Marine Insurance Regular Employees Council (Pyeonghyeop) union, which had been in conflict over collective bargaining rights with management. The Pyeonghyeop union won the case.

According to the legal community on the 1st, the Seoul High Court Civil Division 1 (Presiding Judges Jeon Ji-won, Lee Jae-chan, Kim Young-jin) recognized the collective bargaining rights of the Pyeonghyeop union in the appeal trial of the injunction lawsuit filed by the Samsung Fire & Marine Insurance union the previous day, requesting the suspension of collective bargaining with the Pyeonghyeop union against management.

The Samsung Fire & Marine Insurance union was established in February 2020 and signed a collective agreement with management, but after the Pyeonghyeop union was established in March of the same year, they competed over the right to the collective agreement.

The Pyeonghyeop union is an organization rooted in the "Regular Employees Council," which had been operated as the Samsung Fire & Marine Insurance Employees Association since 1987. It rapidly increased its membership and surpassed the Samsung Fire & Marine Insurance union. The Central Labor Relations Commission regarded the Pyeonghyeop union as the representative union for collective bargaining as the majority union, and the Samsung Fire & Marine Insurance union filed a lawsuit.

The first trial sided with the Samsung Fire & Marine Insurance union. The court stated that there was a "high possibility of invalidity due to serious procedural defects" in the establishment process of the Pyeonghyeop union, suggesting that the union's establishment could be nullified.

Additionally, the court questioned the autonomy and independence of the Pyeonghyeop union based on the fact that until 2019, it effectively prevented the establishment of a "genuine union" and received financial support from management.

However, the second trial ruled, "There is insufficient basis to consider the Pyeonghyeop union as a so-called 'company union' lacking autonomy and independence due to management influence," and recognized the collective bargaining rights of the Pyeonghyeop union. It further stated, "Although it is argued that the union previously acted for management and that the Pyeonghyeop union is essentially the same organization as Pyeonghyeop, thus lacking autonomy and independence, it is reasonable to view the Pyeonghyeop union as a separate entity with different substance and purpose from Pyeonghyeop."