CJ Logistics must recognize Cargo Solidarity union's bargaining rights

Hyundai Steel subcontractor union's separate bargaining unit also reaffirmed

Trend of expanding primary contractor liability continues under revised labor law

Members of the National Parcel Delivery Workers' Union hold a press conference in front of CJ Logistics' headquarters in Jongno-gu, Seoul, on June 10, calling for direct bargaining with the primary contractor. [Yonhap]
Members of the National Parcel Delivery Workers' Union hold a press conference in front of CJ Logistics' headquarters in Jongno-gu, Seoul, on June 10, calling for direct bargaining with the primary contractor. [Yonhap]

The National Labor Relations Commission has upheld the original rulings in two major cases tied to the revised Trade Union Act, commonly known as the "yellow envelope law."

The commission reaffirmed that CJ Logistics must recognize the bargaining rights of the Cargo Solidarity union and that a separate bargaining unit for subcontractor unions at Hyundai Steel is warranted. Observers say the decisions reflect a continuing trend toward broader recognition of primary contractors as employers and stronger bargaining protections for subcontractor unions.

The commission's review panel, meeting Wednesday, upheld the initial rulings in both the CJ Logistics union bargaining eligibility case and the Hyundai Steel bargaining unit separation case.

The CJ Logistics case was brought by the Cargo Solidarity union, acting under a mandate from its parent organization, the Korean Public Service and Transport Workers' Union. The initial ruling recognized the Cargo Solidarity union as an eligible bargaining party, and the commission left that finding intact.

The ruling means CJ Logistics cannot exclude the Cargo Solidarity union from negotiations with parcel delivery workers affiliated with the union. It in effect lends further weight to the initial finding that CJ Logistics, as the primary contractor, qualifies as an employer under labor law.

In the Hyundai Steel case, the commission also upheld the initial ruling in favor of recognition. The central issue was whether subcontractor unions should receive separate bargaining units in a workplace where both primary contractor and subcontractor unions coexist.

The South Chungcheong Provincial Labor Relations Commission had earlier granted separate bargaining units to in-house subcontractor unions at Hyundai Steel's Dangjin plant. Hyundai Steel challenged that decision, but the National Labor Relations Commission upheld the original ruling.

Labor advocates say the rulings reaffirm the direction set since the revised Trade Union Act took effect — recognizing primary contractors as employers and guaranteeing bargaining rights for subcontractor unions. Business groups, however, have raised concerns that the scope of primary contractors' bargaining obligations could continue to expand.

The commission recently recognized primary contractor employer status in cases involving Hanwha Ocean and food-service subcontractor Welliv over workplace safety and working-environment issues. Wednesday's ruling in the CJ Logistics case adds to that pattern, prompting forecasts that disputes over primary and subcontractor bargaining arrangements could multiply going forward.


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