Court suspends labor ruling ordering Posco to hold separate talks with subcontractor union

A court has suspended a National Labor Relations Commission ruling that required Posco to conduct separate collective bargaining with subcontractor unions.

The 14th Administrative Division of Seoul Administrative Court, presided over by Judge Lee Sang-deok, granted Friday a stay application filed by Posco against the National Labor Relations Commission (NLRC). The court found that allowing the NLRC's ruling to stand would risk causing irreparable harm to Posco and that there was an urgent need to prevent such harm.

The dispute traces back to March 10, when the Federation of Korean Trade Unions' metal workers' federation demanded collective bargaining with Posco, prompting two subcontractor unions — the Korean Metal Workers' Union under the Korean Confederation of Trade Unions (KCTU) and the Plant Construction Workers' Union — to each file applications for separate bargaining units. The North Gyeongsang Province Regional Labor Relations Commission recognized Posco's employer status with respect to both subcontractor unions. It also acknowledged the need for separate bargaining units — for the Korean Metal Workers' Union, citing the potential for inter-union conflict and representational interests, and for the Plant Construction Workers' Union, citing the distinct nature of plant construction work and its methods.

Posco challenged that decision before the NLRC, but in June the NLRC upheld the regional commission's ruling in favor of the unions. Posco again contested the outcome, filing last month both a main lawsuit seeking to overturn the NLRC decision and the stay application the court granted Friday.

The ruling marks the first time a court has granted a management-side stay application in litigation related to the so-called yellow envelope law.

The stay does not resolve the underlying dispute. Questions over Posco's employer status with respect to the subcontractor unions and the legality of the separate-bargaining ruling will be addressed in the main proceedings. The first hearing is scheduled for Dec. 3.