A court has ruled that workers who lost their jobs when Gwangju Municipal Second Geriatric Hospital closed in 2023 were not unfairly dismissed by the Gwangju Metropolitan City government.
The Seoul Administrative Court's Division 1 (Presiding Judge Yang Sang-yoon, senior judge) said on Apr. 10 that it dismissed the plaintiffs' claims in a lawsuit filed by a person surnamed Kim and others who worked at Gwangju Municipal Second Geriatric Hospital seeking to overturn a retrial decision by the Chairperson of the Central Labor Relations Commission on remedies for unfair dismissal and unfair labor practices, it announced on the 8th.
Earlier, Chonnam National University Hospital signed a contract with Gwangju City and operated the Second Geriatric Hospital under consignment from July 2013. As deficits piled up, it said it could not continue operating unless Gwangju City covered the shortfalls. The consignment period expired on July 31, 2023, and Gwangju City failed to find a new institution to take over. The Second Geriatric Hospital ultimately closed on Dec. 31, 2023.
Former employees, including Kim, who worked at the hospital as nurses and in other roles, argued it was an unfair dismissal, saying Gwangju City and Chonnam National University Hospital ended their employment without urgent managerial necessity. They also filed for relief with the regional labor relations commission, claiming unfair labor practices on the grounds that the hospital was closed because employees belonged to the Gwangju Municipal Second Geriatric Hospital branch of the Korean Health and Medical Workers' Union under the Korean Confederation of Trade Unions (KCTU) and engaged in union activities.
The Jeonnam Regional Labor Relations Commission found that Chonnam National University Hospital had closed part of its business, making the dismissals justified, and that there were no unfair labor practices. The Central Labor Relations Commission reached the same conclusion and dismissed the retrial request. Kim then filed an administrative lawsuit.
The administrative court also found that Gwangju City and Chonnam National University Hospital did not unfairly dismiss Kim and others. The court noted that the person who entered into employment contracts with workers at the Second Geriatric Hospital was the hospital director appointed by Chonnam National University Hospital, so the employer was Chonnam National University Hospital.
It added, "The dismissals of the workers were carried out in the process of the hospital closing following the termination of the consignment contract between Gwangju City and Chonnam National University Hospital, and are therefore justified."