A full-bench Supreme Court ruling has determined that an affiliated branch of an industrial union can change its classification from industrial union to independent company union.
On 19 February, the full-bench Supreme Court overturned a Seoul High Court judgment in a lawsuit raised by a Mr. Chung and 3 other workers of a car component manufacturer named Valeo Electrical Systems Korea and also members of an industrial branch union, seeking nullification of the decision of the union to change its status from an industrial union to an independent company union. According to the Supreme Court ruling “An industrial branch union is an incorporate body of non-juristic persons and can switch its status from an industrial union to an independent company union if the union gains independence as a workers’ group.”
This ruling is meaningful because it implies that the workers’ right to choose the form of organization and independent decision-making processes are as important as the necessity of maintaining industrial branch unions. Other industrial branch unions in large companies are also more likely to gain independence in the future.