Primary-Employer Bargaining Unleashed: 407 Subcontractor Unions File Demands in a Single Day

On the first day of enforcement of the Yellow Envelope Act, an amendment to the Trade Union and Labor Relations Adjustment Act (the Trade Union Act), on the 10th, 407 subcontractor unions moved to demand bargaining with 221 primary employers. Bargaining demands are pouring in across virtually all sectors, including manufacturing, construction, services, education, and the public sector.
Going forward, complex calculations by labor and management are expected, including disputes over who qualifies as the employer. As the law has only just come into force, bargaining demands by subcontractor unions directed at primary employers are expected to continue to rise.
On the 11th, the Ministry of Employment and Labor (MOEL) released data on bargaining demands filed by subcontractor unions with primary-employer workplaces, based on figures compiled as of 8 p.m. on the 10th.
According to the government’s tally, on the first day of the law’s enforcement, 407 subcontractor unions formally submitted bargaining demands to 221 primary-employer sites. Of these, 357 subcontractor unions affiliated with the Korean Confederation of Trade Unions (KCTU), representing 67,200 members, and 42 subcontractor unions affiliated with the Federation of Korean Trade Unions (FKTU), representing 9,200 members, filed demands. In total, 81,600 union members have requested bargaining.
So far, KCTU-affiliated subcontractor unions have demanded bargaining with 218 primary employers, while FKTU-affiliated subcontractor unions have targeted 9 primary employers. Some primary employers have received bargaining demands from multiple subcontractor unions. The primary employers receiving demands span all industries. The bargaining agenda is also expected to be wide-ranging, covering not only industrial safety but also performance-based pay and other wage issues, working conditions, and working hours.
Within the KCTU, the Korean Metal Workers' Union (KMWU) has demanded bargaining with Hyundai Motor Company, Hyundai Mobis, Hyundai Glovis, Hanwha Ocean, and GM Korea Company. The Korean Construction Workers Federation has requested bargaining with 90 primary construction firms. In addition, the Korean Public Service and Transport Workers' Union (covering call centers and university cleaning staff), the Korean Democratic Federation of General Trade Unions (local governments), and the Korean Federation of Service Workers' Unions (department stores, duty-free shops, parcel delivery) have sent official bargaining requests to Yonsei University, Korea University, CJ Logistics, Korea Post, and others.
Subcontractor unions affiliated with the FKTU have demanded bargaining with POSCO, Coupang Logistics Services (CLS), Seoul Metro, and other entities.
Among the 221 primary employers that received bargaining demands, only five companies and institutions have publicly posted notices of those demands: Hanwha Ocean, POSCO, Coupang Logistics Services (CLS), Busan Transportation Corporation, and Hwaseong City.
Under the Trade Union Act, once an employer receives a bargaining demand from a union, it must immediately post a notice of that fact for one week, and then proceed with subsequent procedures such as announcing the finalized bargaining unit.
Minister of Employment and Labor Kim Young-hoon stated, "As we are taking the first steps toward win-win bargaining in accordance with the law and due procedures, including public notices of bargaining demands and the separation of bargaining units, the government will responsibly support the Trade Union Act so that it can take root in a stable manner."
jhyuk@fnnews.com Reporter Kim Jun-hyuk Reporter