Hanwha Ocean files administrative suit challenging ruling that it is employer of subcontractor workers

Hanwha Ocean is filing an administrative lawsuit to challenge a National Labor Relations Commission ruling that found the shipbuilder to be the employer of workers at Wellive, a subcontractor that handles in-house catering and commuter bus services at its facilities.

According to the Korean Metal Workers' Union's South Gyeongsang Province chapter, Hanwha Ocean replied Tuesday to the union's "11th collective bargaining notice" submitted to management, saying it intends to file an administrative lawsuit against the commission's ruling and seek a stay of execution to obtain a judicial determination.

Earlier, Hanwha Ocean had announced a bargaining demand from subcontractor unions shortly after the so-called "yellow envelope law" took effect in March, but named only the Geoje-Tongyeong-Goseong Shipbuilding Subcontractors' Branch as a bargaining counterpart, excluding the Wellive Branch, which has about 450 union members. The Wellive Branch then filed an objection, demanding improved working conditions and equal bonus payments.

In response, the South Gyeongsang Province Regional Labor Relations Commission ruled in April that Hanwha Ocean must issue a finalized public notice of unions eligible for bargaining, including the Wellive Branch. Hanwha Ocean sought a review, but the National Labor Relations Commission upheld the initial decision on June 15. In the process, the commission also determined that Hanwha Ocean qualifies as the employer of Wellive workers.

Regarding the decision to file the lawsuit, the company said it had closely reviewed the commission's ruling and concluded that the legal question of whether a primary contractor can be recognized as an employer beyond the scope of its contracts warranted a legal challenge. "We intend to seek a final judicial ruling through the court process and will also apply for a stay of execution," it said.

The company added that the lawsuit "is aimed at obtaining a final court ruling on the scope of employer recognition between a primary contractor and subcontractors — it is not a refusal or evasion of the National Labor Relations Commission's decision, nor is it in any way intended to delay collective bargaining."