Amid growing business uncertainty from changes in the global trade environment and the Middle East conflict, labor issues including the Yellow Envelope Law (amendments to Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act) and ordinary wages are bearing down on Korean companies. Union demands to expand labor rights are expected to intensify around summer when wage and collective bargaining negotiations begin in earnest.
Labor Commission: "Metal Workers Federation, Metal Workers Union, and Plant Construction Union Must Bargain Separately"
The Gyeongbuk Regional Labor Relations Commission announced on the 8th that it ruled to recognize POSCO's employer status over subcontractor workers and ordered separate bargaining units in a case filed by subcontractor union members of the Korean Metal Workers' Union (KMWU) and National Plant Construction Workers' Union under the Korean Confederation of Trade Unions (KCTU), who sought collective bargaining with POSCO as the principal contractor. This marks the first labor commission ruling requiring separate bargaining units among subcontractor unions since the Yellow Envelope Law took effect.
The Gyeongbuk commission stated, "Since subcontractors alone cannot achieve structural improvements such as eliminating hazardous factors or installing safety equipment, POSCO is recognized as the employer with substantial control and decision-making authority over bargaining matters related to industrial safety." Regarding the bargaining unit separation decision, the commission explained, "For the Metal Workers Union, we considered the possibility of inter-union conflicts and representativeness based on previous cases involving fair representation disputes between unions. For the Plant Construction Union, we determined separate bargaining was necessary given the different nature of work, including characteristics of plant construction and work methods."
Previously, on the 10th, when the Federation of Korean Metal Workers' Unions (FKMWU) under the Federation of Korean Trade Unions (FKTU) requested collective bargaining with POSCO, both the KMWU and Plant Construction Union filed separate bargaining unit separation requests. Under this ruling, the bargaining units of the FKMWU, KMWU, and Plant Construction Union will each be separated.
In response, the Korea Employers Federation (KEF) stated, "The bargaining unit determination system also needs to operate within the framework of unified bargaining channels," adding, "When differences in interests are not significant or bargaining demands are identical, separating bargaining units based solely on one party's request could increase bargaining confusion and conflicts, so careful judgment is needed."
The KEF said, "According to Ministry of Employment and Labor interpretation guidelines, for a principal contractor to become a bargaining counterpart to a subcontractor union, it must be in a position to substantially and specifically control and determine the working conditions of subcontractor workers," adding, "It must be carefully determined whether the principal contractor had continuous and structural control over subcontractor workers' working conditions, not just temporary intervention."
POSCO Union Angered by Decision to Directly Hire 7,000 Contractor Employees
On the same day, POSCO decided to pursue direct employment of approximately 7,000 contractor employees supporting operations at its Pohang and Gwangyang steelworks. This means recognizing 70% of POSCO's approximately 10,000 total contractor employees as direct hires. POSCO plans to proceed with hiring procedures sequentially, starting with field workers who wish to join the company from among contractor personnel at both steelworks.
