Hyundai Steel, subcontractors reach first labor deal under revised union law, agree on joint safety steps

A parent company and a subcontractor union have reached a collective agreement through direct negotiations for the first time since South Korea's revised labor union law took effect.

The Ministry of Employment and Labor said Hyundai Steel and four of its subsidiaries held a signing ceremony for a "parent-subcontractor collective agreement" at Hyundai Steel's Dangjin plant on Thursday.

The subsidiaries involved were Hyundai ITC in Dangjin, Hyundai IEC in Suncheon, Hyundai IMC in Pohang and Hyundai ISC in Incheon. Representatives from Hyundai Steel, the four subsidiaries and unions belonging to in-house subcontractors gathered to discuss industrial safety issues.

The agreement marks the first case in which a parent company and subcontractor unions reached a deal through negotiations since the revised labor union law took effect March 10. The revised law requires a parent company to bargain with subcontractor unions if it substantively and specifically controls or determines working conditions. This applies even when the parent company is not a direct party to the employment contract.

Earlier, the Labor Relations Commission had ruled that the bargaining units of the four subsidiary unions and the in-house subcontractor union at Hyundai Steel's worksite should be separated. The initial ruling came April 16, followed by a reconsidered ruling on June 24.

Following those rulings, Hyundai Steel and the subsidiary unions held negotiations by bargaining unit. Talks between Hyundai Steel and the four subsidiary unions in particular began with an initial meeting Aug. 20 and continued through four rounds of negotiations.

The negotiations centered on industrial safety, an issue on which the commission had recognized Hyundai Steel's employer status. The parent company and subsidiary labor and management discussed the matter together. As a result, the subsidiary unions and management agreed to continuously improve their industrial safety and health management system. They also agreed to draw up a mid- to long-term road map of improvement measures to raise safety and health standards.

The South Chungcheong Province Labor Relations Commission mediated the negotiations, supporting working-level discussions between labor and management and presiding over meetings involving labor, management and government officials.

"This is the first case in which the dialogue and mutual cooperation between parent companies and subcontractors that the revised union law aims for have been realized on the ground," said Kim Young-hoon, minister of employment and labor. "We will do our utmost to support the settlement of these negotiations so that dialogue between parent companies and subcontractors can spread."