The in-house subcontractor labor union of the Korea Metal Workers' Union at HD Hyundai Heavy Industries has been on strike since midmonth, demanding direct talks with the prime contractor. Holding banners that read "The prime contractor must negotiate directly," they are calling for the restoration and increase of reduced daily wages and improvements in treatment.
The in-house subcontractor chapter on strike is a union made up of workers belonging to different subcontractors. They held collective bargaining with each company. Starting with a formal introductory meeting with Taeyoung Engineering in May, Gyeongil Enterprise, Geumnong Industry, Nade Marine, Daeho Machine Engineering, and Seonjin Enterprise held talks. However, bargaining collapsed on the 3rd, leading to the strike.
The subcontractor union argues that HD Hyundai Heavy Industries has the authority and responsibility to control workers' working hours, methods, and schedules, and therefore qualifies as an employer. The Metal Workers' Union filed a lawsuit in 2017 seeking collective bargaining with HD Hyundai Heavy Industries. In the first and second trials, HD Hyundai Heavy Industries' status as an employer was not recognized. The case was referred to the Supreme Court in 2018, and hearings have been underway for more than five years.
Industry officials say HD Hyundai Heavy Industries is unlikely to accede to the subcontractor union's demands. It is unclear whether HD Hyundai Heavy Industries has the authority to decide, as an employer, on demands such as pay raises, better treatment, and job security, and if it agrees to talks, it would have to negotiate with other partner companies as well. The number of HD Hyundai Heavy Industries' partner companies is known to be about 3,350. Of these, first-tier partners alone number around 1,400.
The union side says some in-house subcontractors have cut wages since May and is demanding that the cuts be restored and wages further increased. They are also calling for the conclusion of a basic labor-management agreement that stipulates working conditions, working hours, wage increases, benefits, and job retention. In addition, they are demanding the payment of encouragement bonuses and job security in the event of a merger with HD Hyundai Mipo.
A labor attorney said, "From the prime contractor's standpoint, expense forecasts could become impossible, making it difficult to actively engage in talks with subcontractors," and added, "Even if the Yellow Envelope Act goes into effect, this situation could repeat unless concrete guidelines on bargaining counterparts are provided."