Hyundai Steel ordered to conduct collective bargaining with suppliers’ labor unions

The Central Labor Relations Committee (CLRC) judged that main contractors, mainly conglomerates, should respond to a demand for collective bargaining from subcontractors’ labor unions.

Regarding a demand for the status for collective bargaining filed by a branch of a labor union organized by non-regular workers at Hyundai Steel against the company, the CLRC concluded that Hyundai Steel is supposed to engage in collective bargaining, meaning that the company’s lack of response constitutes an unfair labor practice.

Under a union for laborers in the metal industry at the Korean Confederation Trade Union (KCTU), the branch in question is led by non-regular workers hired by suppliers of Hyundai Steel. Last September, the union branch occupied a control center at the company’s steel-making plant facilities in Dangjin, South Chungcheong Province.

Hyundai Steel turned down the labor union branch’s demand for collective bargaining on the account that it is not an actual user of labor. In response, the organization filed a request for remedy with the South Chungcheong Provincial Labor Relations Committee but the case was rejected last November. However, the central committee overturned the original decision in favor of the plaintiff. Hyundai Steel has signaled that it would use every procedural tool at its disposal including administrative proceedings to find facts.

Last June, the CLRC also ruled that CJ Logistics should respond to a national courier union’s demand for collective bargaining. CJ Logistics argued that members of the union provide delivery services on an independent contract with each courier agency, adding that courier agencies are supposed to negotiate with their workers. However, the company’s argument was dismissed by the CLRC.

“The CLRC’s ruling is not in line with the guidelines issued by the Ministry of Labor and Employment that labor contracts determine users of labor,” said a business insider. “This ruling will prompt further confusion at the forefronts of industries.


Gun-Huk Lee gun@donga.com