Tug-of-war over 'employer status'... All eyes on first ruling by Labor Relations Commission

The tug-of-war over employer status between principal employers and subcontractor unions is about to face a full-fledged test. In the first two weeks after the amended law took effect, subcontractor unions filed around 700 requests for collective bargaining. From the third week, procedures for mediation and rulings by the Labor Relations Commission are expected to begin, and because the Commission’s decisions are legally binding, both labor and management are paying close attention.
According to the South Korean government and the political establishment on the 22nd, the Labor Relations Commission is expected to hand down its first decision on employer status no later than early to mid April. The review process on applications filed by subcontractor unions for a determination of employer status is projected to start soon.
Data that Representative Jo Ji-yeon of the People Power Party (PPP) obtained from the National Labor Relations Commission show that from the 10th to the 18th, a total of 10 cases related to "employer status determinations" were filed with the Labor Relations Commission. Of these, nine were submitted by the public sector, including local governments and public institutions.
The South Korean government and the labor sector believe that management representatives are either deliberately avoiding bargaining or still conducting legal reviews in the early phase of the amended law. As of the 18th, 270 out of 283 principal workplaces that received bargaining demands had yet to post notice that such demands were made.
If hundreds of bargaining procedures, such as posting notices of bargaining demands, remain stalled as they are now, a flood of requests for employer status determinations could be transferred to the Labor Relations Commission. Under current law, the Commission has primary authority to mediate and arbitrate procedures related to collective bargaining between labor and management.
The question of employer status, which has become the biggest point of contention between principal contractors and subcontractors since the amended law took effect, is also for the Labor Relations Commission to decide. Its rulings on whether employers must post notice of bargaining demands are expected to be closely tied to employer status, as a finding that notice must be posted will likely lead to recognition of employer responsibility.
Under the Trade Union and Labor Relations Adjustment Act (the Trade Union Act), the Labor Relations Commission must issue a decision within 20 days at the latest after receiving cases such as failures to post notice of bargaining demands. From the point the Commission rules, its decisions carry legal force.
Accordingly, once the Commission issues a corrective order, management representatives that delay or evade bargaining can face criminal penalties for unfair labor practices. Although parties may seek reconsideration of the Commission’s decision at the National Labor Relations Commission and then at court, the original ruling remains legally effective until a final judgment. In practice, this leaves employers with no clear exit strategy in bargaining with subcontractor unions, which is why many in the business community are reluctant to become the subject of the first precedent-setting case.
jhyuk@fnnews.com Kim Jun-hyuk Reporter