POSCO Holdings (005490.KS) has become the first major Korean conglomerate to be recognized as a primary employer under the revised Trade Union Act, commonly known as the "Yellow Envelope Law," and will now be required to negotiate with three subcontractor unions.
The Gyeongbuk Regional Labor Relations Commission ruled in favor of both cases regarding the separation of bargaining units at POSCO on Wednesday. The ruling effectively recognizes POSCO's status as a primary employer responsible for subcontracted workers.
The subcontractor bargaining units have been separated into three groups: the Federation of Korean Metal Workers' Trade Unions under the Federation of Korean Trade Unions (FKTU), and the Korean Metal Workers' Union and the National Plant Construction Workers' Union, both under the Korean Confederation of Trade Unions (KCTU). Following the revised Trade Union Act, POSCO is now required to negotiate with its in-house union as well as the three subcontractor unions representing FKTU, the Metal Workers' Union, and the Plant Construction Workers' Union.