Subcontracted workers target POSCO, Hyundai Mobis, Hanwha Ocean

Unionized subcontracted workers stage a protest in front of POSCO Center in Seoul, Tuesday, urging the steelmaker to join collective bargaining with them. Courtesy of Korean Metal Workers' Union

POSCO, Hyundai Mobis and Hanwha Ocean became the main targets of unionized subcontracted workers on Tuesday, as a pro-labor revision to the Trade Union and Labor Relations Adjustment Act — better known as the “yellow envelope law” — took effect after a six-month grace period.

The subcontracted workers asked the clients of their actual employers to join negotiations over wages and working conditions, citing the new law that justifies their demands.

President Lee Jae Myung said the same day cooperation between large corporations and small and medium-sized enterprises under the new law should be seen as “an investment rather than charity” and even “a survival strategy.”

POSCO faced protests from subcontracted workers at its steel plants in Pohang, North Gyeongsang Province, and Gwangyang, South Jeolla Province, for repeatedly refusing to negotiate even after the Supreme Court ruled that the company’s use of outsourced labor was illegal.

Calling for direct employment of workers responsible for regular tasks, the subcontracted workers urged the company to accept their request to join collective bargaining and end discriminatory practices.

“POSCO should apologize for the illegal use of subcontracted workers and take part in talks to convert them into full-time employees,” a union representative said in front of the company’s Seoul office.

Hyundai IHL's unionized workers stage a protest in front of Hyundai Mobis' headquarters in Seoul, Tuesday, urging the parent firm to join collective bargaining with them. Courtesy of Korean Metal Workers' Union

The union of Hyundai IHL, a Hyundai Mobis subsidiary that supplies car lamps, held a rally in front of the parent firm's headquarters in Seoul to demand that the firm scrap its plan to sell the lamp business to France’s OPmobility. Hyundai Mobis announced the sale earlier this year, saying it aimed to streamline its business structure.

Expressing concern over job security following the deal, the union asked Hyundai Mobis to join direct wage talks with Hyundai IHL employees.

“Hyundai Mobis is our real employer,” the union said.

Subcontracted workers at Hanwha Ocean delivered a letter demanding the shipbuilder join wage negotiations after participating in a march organized by the Korean Confederation of Trade Unions in downtown Seoul.

After Hanwha Ocean decided not to distribute performance-based bonuses to subcontractors that are not classified as its “in-house” partners, workers urged the company to pay bonuses to employees of Welliv, a unit that runs cafeterias and other amenities at its shipyard on Geoje Island, South Gyeongsang Province.

“Our negotiations with Hanwha Ocean should mark the beginning of the revised Trade Union Act taking root,” the Welliv union said.

The three conglomerates remained cautious about whether to accept the subcontracted workers’ requests, saying only that they would hold talks within the boundaries of the law. Hyundai Motor and HD Hyundai Heavy Industries have also maintained a similar stance after receiving letters from subcontracted workers calling for direct negotiations.

“Each company is trying to avoid being the first to sit down with subcontracted workers,” a conglomerate insider said on condition of anonymity.

A day earlier, KG Steel decided to absorb two wholly owned subsidiaries that have supported production at its factories in Incheon and Dangjin, South Chungcheong Province.

The move was viewed as a preemptive step to avoid possible labor disputes after the new law’s enforcement, although the company cited improved managerial efficiency as the reason for the merger.