1. As the Seoul Central District Court confirmed the legal status of the workers of in-house subcontractors at Hyundai Motor, labor seems to strengthen their struggle for in-house subcontract workers and partner companies of large companies (outsourcing).
The Court ruled on 18 September 2014 that 924 workers of in-house subcontractors of the Hyundai Motor plants in Ulsan∙Jeonju∙Asan should be regarded as employees hired directly by Hyundai Motor Company.
During a meeting on 18 August 2014, labor and management at Hyundai Motor Company made an agreement with representatives from Hyundai Motors, in-house subcontractors, the Hyundai Motors branch union under the KMWU (Korean Metal Workers’ Union) and the Hyundai Motors subcontractor branch unions (Jeonju and Asan). Concerns are rising that the court ruling may affect negatively the agreement so that subcontract workers at the Jeonju∙Asan plant would not implement the agreement and refuse to withdraw their lawsuits.
[Table 1] Agreement concerning In-house Subcontract Workers at Hyundai Motor Company (through Special Negotiations)
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Features
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Details
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Direct employment of subcontract workers in direct production
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∙ Special employment of 4,000 workers until the end of 2015 (including 2,038 workers currently employed).
∙ Acknowledgement of the years of service according to the number of years employed by subcontracted firms.
∙ Preferential employment of in-house subcontract workers since 2016 when employing technical workers
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Drop lawsuits
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∙ Withdrawal of current civil and criminal lawsuits by both parties.
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Dismissed workers
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∙ Re-instatement of in-house subcontractor workers and pay incentives after withdrawal of administrative lawsuits.
∙ Prohibition of discrimination/disadvantages against re-instated in-house subcontract workers when employing regular workers.
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Working-level
consultation group
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∙ Operate a working-level consultative group for smooth implementation of the agreement and additional discussion
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The Korean Confederation of Trade Unions (KCTU) seems to be utilizing this ruling to strengthen its solidarity with progressive parties and civic groups as well as attempting to make an issue of in-house subcontractors and partner firms of large companies (outsourcing). The KCTU set up a campaign headquarter with a slogan of ‘We want to talk to the real boss’ on September 1 and announced its plans to focus on disguised subcontracting and illegal dispatch in the partner firms of large companies and is planning a large-scale outdoor rally on October 18. In particular, the KCTU seems to take advantage of the regular session of the National Assembly and parliamentary inspection to push for a revision of the laws so that subcontract workers are recognized as directly hired workers by large companies and restrict the use of non-regular workers.
[Table 2] Major Legislation Targets of the KCTU in the Second Half of 2014
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Details
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Related Laws
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∙ Allow dismissed workers and unemployed workers to join unions.
∙ Improve the process for establishing unions.
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Trade Union & Labor Relations Adjustment Act (including the Act on the Establishment & Operation, etc., of Public Officials’ Trade Unions, and the Act on the Establishment, Operation, etc., of Trade Unions for Teachers)
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∙ Prohibit considering general obstruction of traffic during assemblies and demonstrations as a crime
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Criminal Act and Assembly & Demonstration Act
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∙ Recognize subcontract workers as directly hired employees of primary companies and grant employee status to those in independent employment.
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Trade Union & Labor Relations Adjustment Act and Labor Standards Act
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∙ Prohibit the use of non-regular workers for safety-related work
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Labor Standards Act and Act on the Protection, etc. of Temporary Agency Workers
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∙ Prohibit the use of in-house subcontract workers for dangerous and/or toxic work
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Occupational Safety & Health Act
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∙ Oppose privatization
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Special Act on Privatization
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∙ Expand the scope of ordinary wage and reduce working hours
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Labor Standards Act and the
Special Act on the Reduction of Working Hours
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∙ Strengthen requirements for
dismissal for managerial reasons
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Labor Standards Act
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∙ Prohibit applying obstruction of business to trade union activities
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Trade Union & Labor Relations Adjustment Act
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∙ Restrict compensation requirements for damage and provisional attachments as a result of trade union activities
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2. FKTU, focus on labor & pending issues of affiliated unions through government & politics
The Federation of Korea Trade Unions (FKTU) participated in a tripartite meeting held by the Blue House on 1 September, another meeting held by the Saenuri Party leader on 2 September, and an FKTU-Saenuri Party working-level policy conference on 15 September, to demand resolution of the pending issues such as expansion of the scope of ordinary wage and reduction of working hours at the government and political levels. The FKTU is planning to make the policy conference regular with the participation of the executives of the FKTU and a chairman of the policy planning committee in the Saenuri Party.
[Table 3] FKTU Major Pending Issues & Demands
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Pending Issues
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Major Demands
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Ordinary wage
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∆ Abolish ‘Ordinary Wage Guidelines for Labor & Management’ by the Ministry of Employment & Labor (MOEL)
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Working hours
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∆ Reduce working hours to 52 hours per week and reduce the number of sectors where exceptions apply
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Minimum wage
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∆ Revise the Minimum Wage Act
(apply economic growth rate and inflation rate)
∆ Increase penalties for workplaces violating the Minimum Wage Act
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Multiple trade unions
/ time-off
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∆ Revise the Trade Union & Labor Relations Adjustment Act:
– Abolish unification of bargaining channels system and guarantee individual bargaining rights of every union
– Re-set time-off limit to minimum standards and grant duties to workplaces
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Others
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∆ Legislate expansion of medical manpower (Korean Health & Medical Workers’ Union)
∆ Abolish the special working hours system in the transportation industry
(Korean Automobile & Transport Workers’
Federation)
∆ Re-examine plans for normalization of public institutions (Federation of Korean Public Industry Trade Unions, Federation of Korean
Public Trade Unions)
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