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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] SEOUL, May 21 — Supreme Court of Korea upheld a lower court ruling that HD Hyundai Heavy Industries is not legally required to engage in collective bargaining with its in-house subcontractor union.
The court’s en banc decision dismissed the appeal filed by a subcontractor branch of the Korean Metal Workers’ Union, confirming that the shipbuilder does not bear bargaining obligations under the previous labor law framework. The ruling reaffirmed established legal precedent, which requires a direct or implied employment relationship for a company to be considered an employer with collective bargaining duties.
The court noted that while a principal contractor may bear passive obligations—such as refraining from interference—it should be interpreted cautiously when extending this to active obligations like participating in collective bargaining.
However, a minority of justices dissented, arguing that companies exercising substantial control over working conditions should be recognized as employers and thus required to negotiate with subcontracted workers’ unions.
The case, first filed in 2017 after failed bargaining demands, drew attention amid evolving labor laws. A revised Trade Union Act, enacted in March and often referred to as the “Yellow Envelope Law,” broadens the definition of employer. However, the court ruled the previous law applied, given the timing of the lawsuit.
Labor groups criticized the decision and vowed to continue pushing for negotiations, while the company said it respects the ruling and will engage in good-faith dialogue going forward.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
