40% of companies with rough labor committee say, “Userability judgment does not comply with laws and guidelines.”

The Korea Federation of Korean Industries investigates 62 companies that were judged as primary subcontractors... “Supplementary legislation is needed”

(Seoul = Yonhap News) Reporter Hong Gyu-bin = After the implementation of the Yellow Envelope Act (Amended Trade Union Act), a survey showed that 4 out of 10 companies that have passed rulings from the Labor Relations Commission in relation to subcontracting cases distrust the rulings.

According to the Korea Employers Federation's (KEF) survey on the 14th, 'Companies' Perception Survey on Labor Relations Commission Decisions and Subcontractor Negotiations after the Enforcement of the Revised Trade Union Act', 40.3% of responding companies (62 companies) responded that the Labor Relations Commission's decisions regarding the usability of primary contracts are not being made in accordance with the law and the interpretation guidelines of the Ministry of Employment and Labor.

Only 27.4% responded that it was being done appropriately, and 32.3% responded that it was ‘average’.

The most common reason (multiple responses hereinafter) for which the decision was deemed not to be in accordance with the law and guidelines was 'Using the fulfillment of obligations under public laws such as the Occupational Safety and Health Act as a basis for recognition of usability' (52.0%).

The Federation of Korean Industries explained, “This reflects a negative perception of the paradoxical situation where the fulfillment of legal obligations under the Industrial Safety Act leads to an increase in the burden on users.”

In addition, 'recognition of usability for matters other than working conditions' was 48.0%, and 'recognition of usability due to the exercise of ownership and facility management rights, such as production means' and 'using the implementation of government guidelines and recommendations such as standard subcontract contracts as the basis for recognition of usability' were 32.0%.

The most common point of concern in the Labor Relations Commission's main/subcontractor mediation process was that 'adjustment was carried out by adding agenda items that were not recognized for user usability' (59.7%).

This was followed by ‘Initiation of mediation procedures despite ongoing disputes over the primary contract’s usability’ (48.4%), ‘Mediation was terminated by suspending mediation despite insufficient negotiations’ (41.9%), and ‘Presentation of a mediation plan for matters for which the primary contract does not have the authority to dispose of matters’ (32.3%).

The most common concern during the negotiation process with the subcontractor's union was 'the union's unreasonable demands, including agenda items that are not recognized as user friendly' (66.1%).

This was followed by ‘demand for negotiation on matters to be negotiated with subcontractors, such as wages and union activities’ (43.5%), ‘increased negotiation costs due to multiple negotiations and prolonged negotiations’ (33.9%), and ‘joint struggles such as solidarity strikes between subcontractor unions’ (24.2%).

As complementary legislative tasks, companies suggested 'clarification of criteria for judging the usability of primary contractors' (67.7%) and 'exclusion of high-level corporate management decisions from the subject of labor disputes' (54.8%).

Lee Dong-geun, full-time vice president of the Korea Federation of Korean Industries, said, "In order to reduce confusion in industrial sites and ensure predictability, the usability of primary contracts must be judged fairly and strictly in accordance with legal regulations and administrative guidelines along with complementary legislation."