The Central Labor Relations Commission recognized employer status for the subcontractor union of Jungheung Construction & Engineering and Jungheung Construction on review. This case was the first dismissal ruling from the labor commission after the yellow envelope law, a new labor law aimed at strengthening the bargaining rights of subcontract workers, took effect on Mar. 10, but the decision was overturned at the Central Labor Relations Commission.
On the 4th, the Central Labor Relations Commission canceled the decision of the South Jeolla Regional Labor Relations Commission and recognized the prime contractor's obligation to post notice in the retrial of the application filed by the Korea Tower Crane Operators' Union under the Federation of Korean Trade Unions against Jungheung Construction & Engineering and Jungheung Construction to correct the posting of a bargaining request.
Regarding the agenda of industrial safety (including the working environment) that the union demanded for bargaining, the Central Labor Relations Commission said, "It is difficult for the subcontractor, the tower crane rental company, to independently carry out structural improvements such as eliminating overall harmful and risk factors related to tower crane operations or installing and dismantling safety equipment."
Accordingly, the Central Labor Relations Commission said, "For the industrial safety agenda, the prime contractor is recognized as an employer in a position to exercise substantial and specific control and decision-making," and that the fact of the subcontractor union's bargaining request must be posted.
However, for the union's wage-related bargaining agenda, it viewed that "although labor and management may conduct autonomous bargaining for institutional improvement, it is difficult to recognize it as a bargaining agenda premised on the prime contractor being in a position to exercise substantial and specific control and decision-making." This decision is the first review ruling from the Central Labor Relations Commission since the yellow envelope law, a new labor law aimed at strengthening the bargaining rights of subcontract workers, took effect.
Earlier, the union demanded collective bargaining with the two companies, but when the companies did not respond, it filed an application with the South Jeolla Regional Labor Relations Commission on Mar. 24 to post the fact of the bargaining request.
The union asked that the prime contractor's employer status be recognized on grounds including that tower crane operators receive direct instructions and management from the prime contractor. In contrast, Jungheung's side said it is difficult to recognize employer status, noting that the prime contractor does not directly instruct or manage the operators and that there is significant autonomy in the course of performing the work.