Hyundai Motor Company is required to negotiate directly with contract workers in its cafeterias and security personnel, but it is not obligated to negotiate with sales representatives from dealerships, according to a ruling by the Ulsan Regional Labor Board.
On July 15, the Ulsan Labor Board delivered its decision to both parties, citing a request for correction of the 'notification of bargaining demand' filed by the Korean Metal Workers' Union against Hyundai.
This ruling addresses the scope of 'employer status' for subcontracted unions and the issues that can be negotiated following the implementation of the 'Yellow Envelope Law' (amendments to Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act).
The Ulsan Labor Board determined whether the work of subcontracted employees is under Hyundai's substantial control and whether their tasks are essential to the primary business operations of the company. For instance, workers at Hyundai's Ulsan, Jeonju, and Asan plants, although employed by partner companies, work in facilities owned by Hyundai and cannot change their working conditions without the company's approval, thus establishing employer status.
Similarly, cafeteria workers and factory security personnel, who are employed by external firms but operate within Hyundai-owned facilities and must adhere to the company's hygiene and security standards, were also deemed to fall under the negotiation obligation.
In contrast, sales representatives (car masters) at dealerships were not recognized as having employer status because the dealerships operate as independent businesses, managing their own recruitment, staffing, and compensation.
While the Ulsan Labor Board ruled that Hyundai must engage in negotiations with subcontracted workers, cafeteria staff, and security personnel, it also concluded that not all issues raised by the union are subject to negotiation.
* This article has been translated by AI.
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