The Supreme Court Ruled Internal Subcontract Workers Be Considered as Permanent Workers

The Supreme Court Ruled Internal Subcontract Workers Be Considered as Permanent Workers

Hyundai Motors should quickly change internal subcontract workers working for more than 2 years to a permanent position.

The Ministry of Labor should protect the rights of internal subcontractors by emphasizing field supervision.
 

The Supreme Court ruled that internal subcontract workers employed by the manufacturing division of Hyundai Motors for more than 2 years at a production line should be considered as permanent workers. On July 22, the Division 3 of the Supreme Court overturned the original decision and returned the case to the Seoul High Court at the request for retrial.  The plaintiff, an internal subcontractor of Hyundai Motors who was dismissed, originally brought the case to the court as a member of the Union of Temporary Workers at Hyundai Motors in Wulsan against the Chair of the National Labor Relations Commission with charges of unfair dismissal and unfair employment practice and lost the suit.

The Supreme Court’s decision establishes a legal basis to shift subcontract workers to a permanent position, which will curve illegal dispatching in the manufacturing industry and ease employment anxiety of the subcontractors.

Major companies’ indirect employment, mostly in the manufacturing industry, has been increasing significantly after the economy crisis. According to the subcontract report of the Ministry of Labor including large scale businesses with more than 300 employees, subcontractors comprised of 21.9% of employees in 963 businesses. 

Among these subcontractors, 55% and 41.5% were employed by the ship manufacturing and steel industry respectively.Even though subcontractors employed in the manufacturing industry has been working with permanent workers and tasked with similar duties, they have been discriminated in the company working condition, wage, benefits, and employment insecurity

Although the companies exercise the right to supervise subcontract workers, they are avoiding the legal responsibility by insisting that these positions are being outsourced.
Because of this, the automobile and ship manufacturing companies are the main example of illegal abuse in which subcontractors are being illegally dispatched and hired as temporary employees. Considering the following facts, the Supreme Court judged internal subcontract corresponds to illegal dispatch due to the level of supervision invested by the Hyundai Motors, not the official employment structure. ▷ subcontract workers are tasked with the automatic manufacturing system using a conveyer belt ▷ Hyundai Motors have the right to assign and adjust tasks ▷ Hyundai Motors decides work hours, breaks, and work shifts and pace ▷ Hyundai Motors knows the number of internal subcontract workers, internal subcontract workers’ diligence and laziness

In addition to the supreme court’s decision accepting unfair labor practice of subletting companies in March, this decision not only halts the reckless indirect employment, but also protects subcontract workers who has suffered by the legal blind spot. Hyundai Motors should change subcontract workers working for more than 2 years to a permanent position as soon as possible by following the continual court’s rulling to end reckless indirect employment. Other manufacturing companies as well as Hyundai Motors should prepare a measure for subcontract workers. The Ministry of Labor should take the initiative in protecting the right of subcontract workers, and emphasize direct field supervision from court decision regarding subcontractors.