Mando, an auto parts manufacturer, saw its labor union rejoin the Korean Metal Workers' Union (KMWU) under the Korean Confederation of Trade Unions (KCTU) after a 14-year absence. As subcontractor unions demanding collective bargaining with parent companies surge, Korea's two major labor federations are accelerating efforts to consolidate these workers.
According to the Ministry of Employment and Labor on the 11th, 407 subcontractor unions representing approximately 81,600 members demanded collective bargaining with 221 parent companies on the 10th—the first day the revised Trade Union Act took effect. Of these, 357 unions were affiliated with KCTU and 42 with the Federation of Korean Trade Unions (FKTU). However, only five parent companies, including Hanwha Ocean and POSCO, posted public notices acknowledging the bargaining requests.
As bargaining demands from subcontractor unions under the two major federations pour in, more unions are seeking affiliation with KCTU and FKTU to strengthen their negotiating power.
Mando's union held a general membership meeting on the 10th regarding industrial union conversion and voted to join KMWU. Of 1,063 total members, 993 participated in the vote, with 837 voting in favor—an 84% approval rate. This decision marks the union's return to KMWU after departing in 2012.
"Since the Yellow Envelope Law now makes restructuring a subject for bargaining, Mando appears to have concluded that its current bargaining structure cannot adequately address employment instability from industrial transitions and restructuring," a labor sector source explained.
Beyond Mando, platform and subcontractor unions continue to inquire about joining the two federations, with some completing membership ahead of the law's implementation. Four union chapters recently joined KCTU's call center branch, sources confirmed.
Both labor and business circles believe subcontractor unions joining the major federations will increase further once actual bargaining cases materialize. The two federations plan to actively organize not only non-affiliated unions but also platform workers who remain unorganized once bargaining precedents emerge.
"Many subcontractor unions will likely seek affiliation with upper-level organizations, anticipating that productive bargaining with parent companies may prove difficult even after negotiations begin," a business sector source said. "This could further strengthen unions' bargaining power."