The Ulsan Regional Labor Relations Commission ruled that Hyundai Motor's refusal to post a notice of the subcontractor union's bargaining request requires correction.
As the first case related to determining a prime contractor's status as an employer since the enforcement of the yellow envelope law, a new labor law aimed at strengthening the bargaining rights of subcontract workers (Trade Union and Labor Relations Adjustment Act amendment), it is expected to have a considerable impact on similar disputes going forward.
The Ulsan Regional Labor Relations Commission said on the 15th it made a decision of "upheld" in the case filed by the Korean Metal Workers' Union seeking correction of Hyundai Motor's failure to post a notice of the bargaining request.
The decision finds that Hyundai Motor acted improperly by not posting the notice after receiving the subcontractor union's bargaining request, and that the action is subject to correction.
The case arose after the metalworkers' union, following the enforcement of the yellow envelope law, a new labor law aimed at strengthening the bargaining rights of subcontract workers on Mar. 10, sent a bargaining request covering 1,675 subcontractor members to Hyundai Motor, which rejected it on the grounds that it had "no employer status."
The Ulsan commission held two adjudication meetings on the 20th of last month and on the 1st of this month, but could not reach a conclusion because labor and management were sharply divided and the members' job types varied, including production, cleaning, cafeteria, and sales. It issued a final decision after a third meeting that day.
The commission did not disclose the specific grounds for the ruling or the legal reasoning. As a result, details are expected to be confirmed only when the written decision is prepared and delivered to both labor and management. Under labor commission rules, the written decision is delivered within 30 days of the ruling date.
Some suggest the scope of Hyundai Motor's recognition as a prime-contractor employer may have differed depending on the subcontractor members' job duties and employment relationships. However, the commission also did not separately state what scope of bargaining agenda and parties were recognized in this matter.
Following the ruling, Hyundai Motor said it would "review the decision comprehensively after receiving it and prepare a response plan considering legal procedures and regulations."
If a party objects to the commission's decision, it may file for reexamination with the National Labor Relations Commission within 10 days of receiving the written decision.
The ruling stems from cases filed by 10 chapters under the Korean Confederation of Trade Unions (KCTU) Metal Workers' Union, whose members have performed research, production, security, sales, and food service duties at Hyundai Motor's Ulsan, Asan, and Jeonju plants, the Namyang Research and Development Center, and sales agencies.