Hanwha Ocean Must Negotiate with Catering Workers, Labor Board Rules

The Central Labor Commission has ruled that Hanwha Ocean must engage in negotiations with its subcontracted catering workers. This decision reflects a broader recognition of the primary contractor's employer status following the implementation of the Yellow Envelope Law.

On June 15, the commission upheld its initial ruling against Hanwha Ocean's appeal regarding the confirmation of the union representing the subcontracted workers from the Metal Workers' Union in Geoje Tongyeong Goseong. However, it acknowledged Hanwha Ocean's employer status over its subcontractor, Wellive.

The commission stated, "Hanwha Ocean is in a position to substantially and concretely control and determine the working conditions. Improvements to the aging facilities and equipment in the kitchens, laundry rooms, and shuttle buses where union members work cannot be carried out by Wellive alone without the cooperation and approval of Hanwha Ocean, the owner."

In response to the commission's decision, Hanwha Ocean is reportedly considering legal action. If the company contests the ruling, it has 15 days from receiving the decision to file an administrative lawsuit.

Concerns about the broad interpretation of employer status are growing among businesses. The Korea Employers Federation criticized the ruling, stating, "The commission's decision that Hanwha Ocean must negotiate with the Metal Workers' Union members working for Wellive regarding industrial safety and other matters does not align with the Ministry of Employment and Labor's revised union law interpretation guidelines."

The federation emphasized that according to the ministry's guidelines, in-house cafeterias and similar areas are typical examples where general directive authority is recognized under subcontracting agreements and do not fall under the primary contractor's structural control.