After the implementation of the yellow envelope law, a new labor law aimed at strengthening the bargaining rights of subcontract workers (revisions to Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act), a labor commission for the first time declined to recognize a parent company as the employer of a subcontractor union. On the ground, observers said confusion is growing because standards differ by regional labor commissions.
According to labor and business circles on the 12th, the South Jeolla Regional Labor Commission on the 10th dismissed an application to post a notice of a bargaining demand that the Korea Tower Crane Operators' Union, affiliated with the Federation of Korean Trade Unions, filed against Jungheung Construction and Jungheung Engineering & Construction.
On the 24th of last month, the union demanded collective bargaining with the two companies and filed an application with the labor commission. The union said the parent company should be recognized as the employer because operators receive direct instructions from the parent company. The companies countered that they do not issue direct instructions to operators and that operators have significant autonomy.
Unlike earlier cases, there are also many cases in which regional labor commissions have recognized the parent company as the employer. Since the yellow envelope law took effect, employer status of the parent company has been recognized in 20 of the 23 cases decided by regional commissions. In 17 cases, the union's position was accepted, and in three cases, employer status was recognized but separation of bargaining units was dismissed.