Korean Labor Union Faces Setback: Jeonnam Labor Board Rejects Subcontractor’s User Status Claim

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Since the enactment of the “Yellow Envelope” law, a regional labor commission has for the first time found that a prime contractor does not qualify as the employer of a subcontractors’ union.

On the 10th, labor sources said the Jeonnam Regional Labor Commission dismissed an application from the Korea Tower Crane Operators’ Union, which is affiliated with the Korean Federation of Trade Unions (KFTU). The union had requested an official notice confirming its demand for collective bargaining against Jungheung Togeon and Jungheung Construction.

The union first demanded collective bargaining with Jungheung Togeon and Jungheung Construction on the 24th of last month. When the companies declined to negotiate, the union filed the application with the labor commission. The union argued that tower crane operators receive direct orders and supervision from the prime contractors and therefore the prime contractors should be recognized as the employers.

Jungheung Togeon and Jungheung Construction countered that prime contractors do not directly instruct or manage the operators and that the operators exercise substantial autonomy at the work site, making it difficult to establish employer status.

The KFTU said it will appeal the Jeonnam commission’s decision to the Central Labor Commission.