Hyundai Motor has reportedly withdrawn three damage compensation lawsuits filed against irregular workers who participated in strikes. This move seems to be a voluntary withdrawal in anticipation of the passage of the amendment to Articles 2 and 3 of the Labor Union Act, known as the "yellow envelope law."
According to a Hyundai Motor official on the 22nd, the company submitted a complaint withdrawal document to the court regarding three ongoing damage compensation lawsuits on the 12th. These lawsuits involve claims for compensation totaling 368 million won for strikes that the Metal Workers' Union Hyundai Motor Branch held in 2010, 2013, and 2023.
The irregular workers' union halted production lines at the Ulsan plant for about one hour in 2010 and 2013, demanding correction of illegal dispatch practices widespread at Hyundai Motor. In response, Hyundai Motor filed lawsuits seeking compensation of 75 million won against two striking workers from the 2010 strike and 46 million won against five from the 2013 strike.
The Busan High Court ordered compensation of over 37 million won to the workers for the 2010 case, while the Ulsan District Court ordered 23 million won for the 2013 case. However, the Supreme Court overturned both cases in June 2023 and sent them back to the Busan High Court and Ulsan District Court for further proceedings.
Additionally, Hyundai Motor filed a damage compensation claim of 247 million won against two striking workers who occupied the Ulsan Plant No. 4 in 2023.
The complete automobile industry anticipates that the yellow envelope law will be presented at the National Assembly plenary session on the 23rd, leading to an analysis that Hyundai Motor proactively withdrew the lawsuits. The yellow envelope law allows subcontractors and irregular workers to negotiate with primary contractors. It also stipulates that to hold each liability provider accountable for damages related to illegal strikes, individual responsibilities must be defined.
Industry analysis suggests that Hyundai Motor withdrew the lawsuits against striking workers in light of the government's and ruling party's, the Democratic Party of Korea, intention to enforce the yellow envelope law. In fact, it is reported that the Democratic Party of Korea requested last month that Hyundai Motor and Hyundai Steel withdraw damage compensation lawsuits against striking workers.